Correlation Between Unisplendour Corp and Hunan Investment
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By analyzing existing cross correlation between Unisplendour Corp and Hunan Investment Group, you can compare the effects of market volatilities on Unisplendour Corp and Hunan Investment 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 Unisplendour Corp with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisplendour Corp and Hunan Investment.
Diversification Opportunities for Unisplendour Corp and Hunan Investment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Unisplendour and Hunan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Unisplendour Corp and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Unisplendour Corp 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 Unisplendour Corp are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Unisplendour Corp i.e., Unisplendour Corp and Hunan Investment go up and down completely randomly.
Pair Corralation between Unisplendour Corp and Hunan Investment
Assuming the 90 days trading horizon Unisplendour Corp is expected to generate 1.85 times less return on investment than Hunan Investment. In addition to that, Unisplendour Corp is 1.18 times more volatile than Hunan Investment Group. It trades about 0.06 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.12 per unit of volatility. If you would invest 407.00 in Hunan Investment Group on September 3, 2024 and sell it today you would earn a total of 174.00 from holding Hunan Investment Group or generate 42.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unisplendour Corp vs. Hunan Investment Group
Performance |
| Timeline |
| Unisplendour Corp |
| Hunan Investment |
Unisplendour Corp and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unisplendour Corp and Hunan Investment
The main advantage of trading using opposite Unisplendour Corp and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisplendour Corp position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Unisplendour Corp vs. Agricultural Bank of | Unisplendour Corp vs. China Construction Bank | Unisplendour Corp vs. Postal Savings Bank | Unisplendour Corp vs. Bank of Communications |
| Hunan Investment vs. Xinke Material | Hunan Investment vs. King Strong New Material | Hunan Investment vs. Advanced Technology Materials | Hunan Investment vs. Dhc Software Co |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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