Correlation Between Shanghai Shuixing and State Grid
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By analyzing existing cross correlation between Shanghai Shuixing Home and State Grid InformationCommunication, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and State Grid.
Diversification Opportunities for Shanghai Shuixing and State Grid
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shanghai and State is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home 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 Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and State Grid go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and State Grid
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 0.81 times more return on investment than State Grid. However, Shanghai Shuixing Home is 1.23 times less risky than State Grid. It trades about 0.04 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 1,324 in Shanghai Shuixing Home on October 11, 2024 and sell it today you would earn a total of 436.00 from holding Shanghai Shuixing Home or generate 32.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Shuixing Home vs. State Grid InformationCommunic
Performance |
Timeline |
Shanghai Shuixing Home |
State Grid Informati |
Shanghai Shuixing and State Grid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Shuixing and State Grid
The main advantage of trading using opposite Shanghai Shuixing and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.Shanghai Shuixing vs. Anhui Deli Household | Shanghai Shuixing vs. Xiamen Bank Co | Shanghai Shuixing vs. Jahen Household Products | Shanghai Shuixing vs. Do Fluoride Chemicals Co |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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