Correlation Between Shenzhen Hifuture and UCloud Technology
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and UCloud Technology Co, you can compare the effects of market volatilities on Shenzhen Hifuture and UCloud Technology 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 Shenzhen Hifuture with a short position of UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and UCloud Technology.
Diversification Opportunities for Shenzhen Hifuture and UCloud Technology
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and UCloud is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology and Shenzhen Hifuture 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 Shenzhen Hifuture Electric are associated (or correlated) with UCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCloud Technology has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and UCloud Technology go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and UCloud Technology
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the UCloud Technology. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.24 times less risky than UCloud Technology. The stock trades about -0.01 of its potential returns per unit of risk. The UCloud Technology Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,274 in UCloud Technology Co on September 3, 2024 and sell it today you would earn a total of 182.00 from holding UCloud Technology Co or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. UCloud Technology Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| UCloud Technology |
Shenzhen Hifuture and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and UCloud Technology
The main advantage of trading using opposite Shenzhen Hifuture and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, UCloud Technology 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 UCloud Technology will offset losses from the drop in UCloud Technology's long position.| Shenzhen Hifuture vs. Wuhan Yangtze Communication | Shenzhen Hifuture vs. Holitech Technology Co | Shenzhen Hifuture vs. Shenzhen Kexin Communication | Shenzhen Hifuture vs. Saurer Intelligent Technology |
| UCloud Technology vs. Agricultural Bank of | UCloud Technology vs. China Construction Bank | UCloud Technology vs. Postal Savings Bank | UCloud Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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