Correlation Between Unigroup Guoxin and Xian International
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and Xian International Medical, you can compare the effects of market volatilities on Unigroup Guoxin and Xian International 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 Unigroup Guoxin with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and Xian International.
Diversification Opportunities for Unigroup Guoxin and Xian International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Unigroup and Xian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Unigroup Guoxin 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 Unigroup Guoxin Microelectronics are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Unigroup Guoxin i.e., Unigroup Guoxin and Xian International go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and Xian International
Assuming the 90 days trading horizon Unigroup Guoxin Microelectronics is expected to under-perform the Xian International. But the stock apears to be less risky and, when comparing its historical volatility, Unigroup Guoxin Microelectronics is 1.38 times less risky than Xian International. The stock trades about -0.22 of its potential returns per unit of risk. The Xian International Medical is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 656.00 in Xian International Medical on September 13, 2024 and sell it today you would lose (38.00) from holding Xian International Medical or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unigroup Guoxin Microelectroni vs. Xian International Medical
Performance |
| Timeline |
| Unigroup Guoxin Micr |
| Xian International |
Unigroup Guoxin and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigroup Guoxin and Xian International
The main advantage of trading using opposite Unigroup Guoxin and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Unigroup Guoxin vs. Industrial and Commercial | Unigroup Guoxin vs. Agricultural Bank of | Unigroup Guoxin vs. China Construction Bank | Unigroup Guoxin vs. Bank of China |
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 Stocks Directory module to find actively traded stocks across global markets.
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