Correlation Between Unigroup Guoxin and Tongxing Environmental
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and Tongxing Environmental Protection, you can compare the effects of market volatilities on Unigroup Guoxin and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and Tongxing Environmental.
Diversification Opportunities for Unigroup Guoxin and Tongxing Environmental
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unigroup and Tongxing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Unigroup Guoxin i.e., Unigroup Guoxin and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and Tongxing Environmental
Assuming the 90 days trading horizon Unigroup Guoxin Microelectronics is expected to generate 0.82 times more return on investment than Tongxing Environmental. However, Unigroup Guoxin Microelectronics is 1.22 times less risky than Tongxing Environmental. It trades about 0.01 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about 0.01 per unit of risk. If you would invest 6,744 in Unigroup Guoxin Microelectronics on September 4, 2024 and sell it today you would lose (94.00) from holding Unigroup Guoxin Microelectronics or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unigroup Guoxin Microelectroni vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Unigroup Guoxin Micr |
| Tongxing Environmental |
Unigroup Guoxin and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigroup Guoxin and Tongxing Environmental
The main advantage of trading using opposite Unigroup Guoxin and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| Unigroup Guoxin vs. Jilin Jlu Communication | Unigroup Guoxin vs. Guangxi Wuzhou Communications | Unigroup Guoxin vs. Shandong Sanyuan Biotechnology | Unigroup Guoxin vs. Sunwave Communications Co |
| Tongxing Environmental vs. Ming Yang Smart | Tongxing Environmental vs. 159681 | Tongxing Environmental vs. 159005 | Tongxing Environmental vs. 516220 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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