Correlation Between Shenzhen Transsion and State Grid
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and State Grid InformationCommunication, you can compare the effects of market volatilities on Shenzhen Transsion 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 Shenzhen Transsion with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and State Grid.
Diversification Opportunities for Shenzhen Transsion and State Grid
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and State is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings 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 Shenzhen Transsion 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 Shenzhen Transsion Holdings 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 Shenzhen Transsion i.e., Shenzhen Transsion and State Grid go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and State Grid
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to generate 1.29 times more return on investment than State Grid. However, Shenzhen Transsion is 1.29 times more volatile than State Grid InformationCommunication. It trades about -0.07 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about -0.16 per unit of risk. If you would invest 10,002 in Shenzhen Transsion Holdings on September 12, 2024 and sell it today you would lose (601.00) from holding Shenzhen Transsion Holdings or give up 6.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. State Grid InformationCommunic
Performance |
| Timeline |
| Shenzhen Transsion |
| State Grid Informati |
Shenzhen Transsion and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and State Grid
The main advantage of trading using opposite Shenzhen Transsion and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion 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.| Shenzhen Transsion vs. State Grid InformationCommunication | Shenzhen Transsion vs. Saurer Intelligent Technology | Shenzhen Transsion vs. Changchun UP Optotech | Shenzhen Transsion vs. Jiangxi Hengda Hi Tech |
| State Grid vs. Gansu Jiu Steel | State Grid vs. Shandong Mining Machinery | State Grid vs. Aba Chemicals Corp | State Grid vs. BlueFocus Communication 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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