Correlation Between Xian International and Unigroup Guoxin
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By analyzing existing cross correlation between Xian International Medical and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Xian International and Unigroup Guoxin 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 Xian International with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Unigroup Guoxin.
Diversification Opportunities for Xian International and Unigroup Guoxin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xian and Unigroup is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr and Xian International 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 Xian International Medical are associated (or correlated) with Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Xian International i.e., Xian International and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Xian International and Unigroup Guoxin
Assuming the 90 days trading horizon Xian International Medical is expected to under-perform the Unigroup Guoxin. But the stock apears to be less risky and, when comparing its historical volatility, Xian International Medical is 1.08 times less risky than Unigroup Guoxin. The stock trades about -0.03 of its potential returns per unit of risk. The Unigroup Guoxin Microelectronics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,341 in Unigroup Guoxin Microelectronics on September 12, 2024 and sell it today you would earn a total of 249.00 from holding Unigroup Guoxin Microelectronics or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Xian International |
| Unigroup Guoxin Micr |
Xian International and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Unigroup Guoxin
The main advantage of trading using opposite Xian International and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Xian International vs. Lutian Machinery Co | Xian International vs. PetroChina Co Ltd | Xian International vs. Bank of China | Xian International vs. Gansu Jiu Steel |
| Unigroup Guoxin vs. Gansu Jiu Steel | Unigroup Guoxin vs. Shandong Mining Machinery | Unigroup Guoxin vs. Aba Chemicals Corp | Unigroup Guoxin 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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