Correlation Between Unigroup Guoxin and Nantong Haixing
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and Nantong Haixing Electronics, you can compare the effects of market volatilities on Unigroup Guoxin and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and Nantong Haixing.
Diversification Opportunities for Unigroup Guoxin and Nantong Haixing
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Unigroup and Nantong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Unigroup Guoxin i.e., Unigroup Guoxin and Nantong Haixing go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and Nantong Haixing
Assuming the 90 days trading horizon Unigroup Guoxin Microelectronics is expected to under-perform the Nantong Haixing. In addition to that, Unigroup Guoxin is 1.95 times more volatile than Nantong Haixing Electronics. It trades about -0.06 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.08 per unit of volatility. If you would invest 1,410 in Nantong Haixing Electronics on August 29, 2024 and sell it today you would lose (50.00) from holding Nantong Haixing Electronics or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unigroup Guoxin Microelectroni vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Unigroup Guoxin Micr |
| Nantong Haixing Elec |
Unigroup Guoxin and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigroup Guoxin and Nantong Haixing
The main advantage of trading using opposite Unigroup Guoxin and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Unigroup Guoxin vs. Uxi Unicomp Technology | Unigroup Guoxin vs. Kingsignal Technology Co | Unigroup Guoxin vs. Dongguan Aohai Technology | Unigroup Guoxin vs. CSSC Offshore Marine |
| Nantong Haixing vs. PetroChina Co Ltd | Nantong Haixing vs. China State Construction | Nantong Haixing vs. China Mobile Limited | Nantong Haixing vs. Industrial and Commercial |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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