Correlation Between Unigroup Guoxin and Hangzhou Huawang
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and Hangzhou Huawang New, you can compare the effects of market volatilities on Unigroup Guoxin and Hangzhou Huawang 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 Hangzhou Huawang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and Hangzhou Huawang.
Diversification Opportunities for Unigroup Guoxin and Hangzhou Huawang
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Unigroup and Hangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni and Hangzhou Huawang New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Huawang New 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 Hangzhou Huawang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Huawang New has no effect on the direction of Unigroup Guoxin i.e., Unigroup Guoxin and Hangzhou Huawang go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and Hangzhou Huawang
Assuming the 90 days trading horizon Unigroup Guoxin Microelectronics is expected to under-perform the Hangzhou Huawang. In addition to that, Unigroup Guoxin is 1.29 times more volatile than Hangzhou Huawang New. It trades about -0.04 of its total potential returns per unit of risk. Hangzhou Huawang New is currently generating about -0.01 per unit of volatility. If you would invest 1,509 in Hangzhou Huawang New on August 29, 2024 and sell it today you would lose (259.00) from holding Hangzhou Huawang New or give up 17.16% 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. Hangzhou Huawang New
Performance |
| Timeline |
| Unigroup Guoxin Micr |
| Hangzhou Huawang New |
Unigroup Guoxin and Hangzhou Huawang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unigroup Guoxin and Hangzhou Huawang
The main advantage of trading using opposite Unigroup Guoxin and Hangzhou Huawang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin position performs unexpectedly, Hangzhou Huawang 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 Hangzhou Huawang will offset losses from the drop in Hangzhou Huawang's long position.| Unigroup Guoxin vs. Nanjing Putian Telecommunications | Unigroup Guoxin vs. Shenzhen Hifuture Electric | Unigroup Guoxin vs. Shenyang Huitian Thermal | Unigroup Guoxin vs. Jiangsu Xinning Modern |
| Hangzhou Huawang vs. Zijin Mining Group | Hangzhou Huawang vs. Wanhua Chemical Group | Hangzhou Huawang vs. Baoshan Iron Steel | Hangzhou Huawang vs. Shandong Gold Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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