Correlation Between Shandong Hongchuang and Uxi Unicomp
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By analyzing existing cross correlation between Shandong Hongchuang Aluminum and Uxi Unicomp Technology, you can compare the effects of market volatilities on Shandong Hongchuang and Uxi Unicomp 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 Shandong Hongchuang with a short position of Uxi Unicomp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Hongchuang and Uxi Unicomp.
Diversification Opportunities for Shandong Hongchuang and Uxi Unicomp
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Uxi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hongchuang Aluminum and Uxi Unicomp Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxi Unicomp Technology and Shandong Hongchuang 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 Shandong Hongchuang Aluminum are associated (or correlated) with Uxi Unicomp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uxi Unicomp Technology has no effect on the direction of Shandong Hongchuang i.e., Shandong Hongchuang and Uxi Unicomp go up and down completely randomly.
Pair Corralation between Shandong Hongchuang and Uxi Unicomp
Assuming the 90 days trading horizon Shandong Hongchuang Aluminum is expected to generate 1.01 times more return on investment than Uxi Unicomp. However, Shandong Hongchuang is 1.01 times more volatile than Uxi Unicomp Technology. It trades about 0.04 of its potential returns per unit of risk. Uxi Unicomp Technology is currently generating about -0.05 per unit of risk. If you would invest 720.00 in Shandong Hongchuang Aluminum on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Shandong Hongchuang Aluminum or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Hongchuang Aluminum vs. Uxi Unicomp Technology
Performance |
| Timeline |
| Shandong Hongchuang |
| Uxi Unicomp Technology |
Shandong Hongchuang and Uxi Unicomp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Hongchuang and Uxi Unicomp
The main advantage of trading using opposite Shandong Hongchuang and Uxi Unicomp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Hongchuang position performs unexpectedly, Uxi Unicomp 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 Uxi Unicomp will offset losses from the drop in Uxi Unicomp's long position.| Shandong Hongchuang vs. Dareway Software Co | Shandong Hongchuang vs. Anji Foodstuff Co | Shandong Hongchuang vs. Beijing Yanjing Brewery | Shandong Hongchuang vs. Yankershop Food Co |
| Uxi Unicomp vs. New China Life | Uxi Unicomp vs. Ming Yang Smart | Uxi Unicomp vs. 159681 | Uxi Unicomp vs. 159005 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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