Correlation Between Unisplendour Corp and Xingguang Agricultural
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By analyzing existing cross correlation between Unisplendour Corp and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Unisplendour Corp and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisplendour Corp and Xingguang Agricultural.
Diversification Opportunities for Unisplendour Corp and Xingguang Agricultural
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Unisplendour and Xingguang is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Unisplendour Corp and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Unisplendour Corp i.e., Unisplendour Corp and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Unisplendour Corp and Xingguang Agricultural
Assuming the 90 days trading horizon Unisplendour Corp is expected to generate 1.07 times more return on investment than Xingguang Agricultural. However, Unisplendour Corp is 1.07 times more volatile than Xingguang Agricultural Mach. It trades about -0.11 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.3 per unit of risk. If you would invest 2,919 in Unisplendour Corp on October 29, 2024 and sell it today you would lose (237.00) from holding Unisplendour Corp or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unisplendour Corp vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Unisplendour Corp |
| Xingguang Agricultural |
Unisplendour Corp and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unisplendour Corp and Xingguang Agricultural
The main advantage of trading using opposite Unisplendour Corp and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisplendour Corp position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Unisplendour Corp vs. Linewell Software Co | Unisplendour Corp vs. Hainan Airlines Co | Unisplendour Corp vs. GuoChuang Software Co | Unisplendour Corp vs. Lier Chemical Co |
| Xingguang Agricultural vs. Lutian Machinery Co | Xingguang Agricultural vs. Jilin OLED Material | Xingguang Agricultural vs. King Strong New Material | Xingguang Agricultural vs. Guangzhou Tinci Materials |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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