Correlation Between Industrial and State Grid
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By analyzing existing cross correlation between Industrial and Commercial and State Grid InformationCommunication, you can compare the effects of market volatilities on Industrial and State Grid and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Industrial with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and State Grid.
Diversification Opportunities for Industrial and State Grid
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and State is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati and Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Industrial and Commercial are associated (or correlated) with State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Industrial i.e., Industrial and State Grid go up and down completely randomly.
Pair Corralation between Industrial and State Grid
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.45 times more return on investment than State Grid. However, Industrial and Commercial is 2.23 times less risky than State Grid. It trades about 0.11 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.02 per unit of risk. If you would invest 473.00 in Industrial and Commercial on November 5, 2024 and sell it today you would earn a total of 209.00 from holding Industrial and Commercial or generate 44.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. State Grid InformationCommunic
Performance |
| Timeline |
| Industrial and Commercial |
| State Grid Informati |
Industrial and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and State Grid
The main advantage of trading using opposite Industrial and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, State Grid can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in State Grid will offset losses from the drop in State Grid's long position.| Industrial vs. V V Food | Industrial vs. Youyou Foods Co | Industrial vs. Dazhong Transportation Group | Industrial vs. Anji Foodstuff Co |
| State Grid vs. China Petroleum Chemical | State Grid vs. PetroChina Co Ltd | State Grid vs. China State Construction | State Grid vs. China Railway Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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