Correlation Between Guangzhou Dongfang and Unigroup Guoxin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Guangzhou Dongfang 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 Guangzhou Dongfang with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Unigroup Guoxin.
Diversification Opportunities for Guangzhou Dongfang and Unigroup Guoxin
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Unigroup is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel 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 Guangzhou Dongfang 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 Guangzhou Dongfang Hotel 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 Guangzhou Dongfang i.e., Guangzhou Dongfang and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Unigroup Guoxin
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 0.52 times more return on investment than Unigroup Guoxin. However, Guangzhou Dongfang Hotel is 1.94 times less risky than Unigroup Guoxin. It trades about -0.03 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.06 per unit of risk. If you would invest 1,012 in Guangzhou Dongfang Hotel on August 29, 2024 and sell it today you would lose (14.00) from holding Guangzhou Dongfang Hotel or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Unigroup Guoxin Micr |
Guangzhou Dongfang and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Unigroup Guoxin
The main advantage of trading using opposite Guangzhou Dongfang and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang 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.| Guangzhou Dongfang vs. Agricultural Bank of | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. Bank of China | Guangzhou Dongfang vs. China Construction Bank |
| Unigroup Guoxin vs. Uxi Unicomp Technology | Unigroup Guoxin vs. Kingsignal Technology Co | Unigroup Guoxin vs. Dongguan Aohai Technology | Unigroup Guoxin vs. CSSC Offshore Marine |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |