Correlation Between Unisplendour Corp and Huafa Industrial
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By analyzing existing cross correlation between Unisplendour Corp and Huafa Industrial Co, you can compare the effects of market volatilities on Unisplendour Corp and Huafa Industrial 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 Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisplendour Corp and Huafa Industrial.
Diversification Opportunities for Unisplendour Corp and Huafa Industrial
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Unisplendour and Huafa is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Unisplendour Corp and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial 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 Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Unisplendour Corp i.e., Unisplendour Corp and Huafa Industrial go up and down completely randomly.
Pair Corralation between Unisplendour Corp and Huafa Industrial
Assuming the 90 days trading horizon Unisplendour Corp is expected to generate 1.72 times more return on investment than Huafa Industrial. However, Unisplendour Corp is 1.72 times more volatile than Huafa Industrial Co. It trades about -0.03 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about -0.06 per unit of risk. If you would invest 2,592 in Unisplendour Corp on September 5, 2024 and sell it today you would lose (92.00) from holding Unisplendour Corp or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unisplendour Corp vs. Huafa Industrial Co
Performance |
| Timeline |
| Unisplendour Corp |
| Huafa Industrial |
Unisplendour Corp and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unisplendour Corp and Huafa Industrial
The main advantage of trading using opposite Unisplendour Corp and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisplendour Corp position performs unexpectedly, Huafa Industrial 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Unisplendour Corp vs. Datang HuaYin Electric | Unisplendour Corp vs. CSSC Offshore Marine | Unisplendour Corp vs. Union Semiconductor Co | Unisplendour Corp vs. YLZ Information Tech |
| Huafa Industrial vs. Panda Financial Holding | Huafa Industrial vs. Unisplendour Corp | Huafa Industrial vs. Xiamen Bank Co | Huafa Industrial vs. Guangdong Shenglu Telecommunication |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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