Correlation Between China Union and Taiji Computer
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By analyzing existing cross correlation between China Union Holdings and Taiji Computer Corp, you can compare the effects of market volatilities on China Union and Taiji Computer 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 Union with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Union and Taiji Computer.
Diversification Opportunities for China Union and Taiji Computer
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Taiji is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Union Holdings and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and China Union 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 Union Holdings are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of China Union i.e., China Union and Taiji Computer go up and down completely randomly.
Pair Corralation between China Union and Taiji Computer
Assuming the 90 days trading horizon China Union Holdings is expected to under-perform the Taiji Computer. In addition to that, China Union is 1.07 times more volatile than Taiji Computer Corp. It trades about -0.51 of its total potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.15 per unit of volatility. If you would invest 2,648 in Taiji Computer Corp on September 26, 2024 and sell it today you would lose (187.00) from holding Taiji Computer Corp or give up 7.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Union Holdings vs. Taiji Computer Corp
Performance |
| Timeline |
| China Union Holdings |
| Taiji Computer Corp |
China Union and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Union and Taiji Computer
The main advantage of trading using opposite China Union and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Union position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| China Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union vs. Ping An Insurance |
| Taiji Computer vs. Kweichow Moutai Co | Taiji Computer vs. Shenzhen Mindray Bio Medical | Taiji Computer vs. Jiangsu Pacific Quartz | Taiji Computer vs. G bits Network Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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