Correlation Between Hubei Yingtong and State Grid
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and State Grid InformationCommunication, you can compare the effects of market volatilities on Hubei Yingtong 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 Hubei Yingtong with a short position of State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and State Grid.
Diversification Opportunities for Hubei Yingtong and State Grid
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hubei and State is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati 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 Hubei Yingtong 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 Hubei Yingtong Telecommunication 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 Hubei Yingtong i.e., Hubei Yingtong and State Grid go up and down completely randomly.
Pair Corralation between Hubei Yingtong and State Grid
Assuming the 90 days trading horizon Hubei Yingtong is expected to generate 2.25 times less return on investment than State Grid. In addition to that, Hubei Yingtong is 1.28 times more volatile than State Grid InformationCommunication. It trades about 0.02 of its total potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.05 per unit of volatility. If you would invest 1,835 in State Grid InformationCommunication on September 27, 2024 and sell it today you would earn a total of 115.00 from holding State Grid InformationCommunication or generate 6.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. State Grid InformationCommunic
Performance |
Timeline |
Hubei Yingtong Telec |
State Grid Informati |
Hubei Yingtong and State Grid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hubei Yingtong and State Grid
The main advantage of trading using opposite Hubei Yingtong and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong 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.Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. Agricultural Bank of | Hubei Yingtong vs. China Construction Bank | Hubei Yingtong vs. Bank of China |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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