Correlation Between Shantui Construction and UCloud Technology
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By analyzing existing cross correlation between Shantui Construction Machinery and UCloud Technology Co, you can compare the effects of market volatilities on Shantui Construction and UCloud Technology 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 Shantui Construction with a short position of UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and UCloud Technology.
Diversification Opportunities for Shantui Construction and UCloud Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantui and UCloud is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with UCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCloud Technology has no effect on the direction of Shantui Construction i.e., Shantui Construction and UCloud Technology go up and down completely randomly.
Pair Corralation between Shantui Construction and UCloud Technology
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 0.69 times more return on investment than UCloud Technology. However, Shantui Construction Machinery is 1.46 times less risky than UCloud Technology. It trades about 0.08 of its potential returns per unit of risk. UCloud Technology Co is currently generating about 0.03 per unit of risk. If you would invest 400.00 in Shantui Construction Machinery on September 12, 2024 and sell it today you would earn a total of 603.00 from holding Shantui Construction Machinery or generate 150.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. UCloud Technology Co
Performance |
| Timeline |
| Shantui Construction |
| UCloud Technology |
Shantui Construction and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and UCloud Technology
The main advantage of trading using opposite Shantui Construction and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, UCloud Technology 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 UCloud Technology will offset losses from the drop in UCloud Technology's long position.| Shantui Construction vs. Agricultural Bank of | Shantui Construction vs. Industrial and Commercial | Shantui Construction vs. Bank of China | Shantui Construction vs. PetroChina Co Ltd |
| UCloud Technology vs. Shanghai Construction Group | UCloud Technology vs. Tengda Construction Group | UCloud Technology vs. Linzhou Heavy Machinery | UCloud Technology vs. Shantui Construction Machinery |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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