Correlation Between China State and GRG Banking
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By analyzing existing cross correlation between China State Construction and GRG Banking Equipment, you can compare the effects of market volatilities on China State and GRG Banking 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 China State with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and GRG Banking.
Diversification Opportunities for China State and GRG Banking
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and GRG is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and China State 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 China State Construction are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of China State i.e., China State and GRG Banking go up and down completely randomly.
Pair Corralation between China State and GRG Banking
Assuming the 90 days trading horizon China State Construction is expected to generate 0.77 times more return on investment than GRG Banking. However, China State Construction is 1.3 times less risky than GRG Banking. It trades about 0.02 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.01 per unit of risk. If you would invest 572.00 in China State Construction on August 30, 2024 and sell it today you would earn a total of 24.00 from holding China State Construction or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. GRG Banking Equipment
Performance |
| Timeline |
| China State Construction |
| GRG Banking Equipment |
China State and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and GRG Banking
The main advantage of trading using opposite China State and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| China State vs. Shenyang Chemical Industry | China State vs. Lianhe Chemical Technology | China State vs. North Huajin Chemical | China State vs. Maoming Petro Chemical Shihua |
| GRG Banking vs. China State Construction | GRG Banking vs. Huafa Industrial Co | GRG Banking vs. China International Capital | GRG Banking vs. Kweichow Moutai Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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