Correlation Between Unigroup Guoxin and Caihong Display
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and Caihong Display Devices, you can compare the effects of market volatilities on Unigroup Guoxin and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and Caihong Display.
Diversification Opportunities for Unigroup Guoxin and Caihong Display
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Unigroup and Caihong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Unigroup Guoxin i.e., Unigroup Guoxin and Caihong Display go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and Caihong Display
Assuming the 90 days trading horizon Unigroup Guoxin Microelectronics is expected to generate 1.49 times more return on investment than Caihong Display. However, Unigroup Guoxin is 1.49 times more volatile than Caihong Display Devices. It trades about 0.03 of its potential returns per unit of risk. Caihong Display Devices is currently generating about -0.08 per unit of risk. If you would invest 6,545 in Unigroup Guoxin Microelectronics on September 3, 2024 and sell it today you would earn a total of 53.00 from holding Unigroup Guoxin Microelectronics or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unigroup Guoxin Microelectroni vs. Caihong Display Devices
Performance |
| Timeline |
| Unigroup Guoxin Micr |
| Caihong Display Devices |
Unigroup Guoxin and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigroup Guoxin and Caihong Display
The main advantage of trading using opposite Unigroup Guoxin and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Unigroup Guoxin vs. Agricultural Bank of | Unigroup Guoxin vs. China Construction Bank | Unigroup Guoxin vs. Postal Savings Bank | Unigroup Guoxin vs. Bank of Communications |
| Caihong Display vs. Agricultural Bank of | Caihong Display vs. China Construction Bank | Caihong Display vs. Postal Savings Bank | Caihong Display vs. Bank of Communications |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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