Correlation Between Guilin Seamild and UCloud Technology
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By analyzing existing cross correlation between Guilin Seamild Foods and UCloud Technology Co, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and UCloud Technology.
Diversification Opportunities for Guilin Seamild and UCloud Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guilin and UCloud is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and UCloud Technology go up and down completely randomly.
Pair Corralation between Guilin Seamild and UCloud Technology
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to under-perform the UCloud Technology. But the stock apears to be less risky and, when comparing its historical volatility, Guilin Seamild Foods is 2.56 times less risky than UCloud Technology. The stock trades about -0.03 of its potential returns per unit of risk. The UCloud Technology Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,306 in UCloud Technology Co on November 8, 2024 and sell it today you would earn a total of 354.00 from holding UCloud Technology Co or generate 27.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Guilin Seamild Foods vs. UCloud Technology Co
Performance |
| Timeline |
| Guilin Seamild Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| UCloud Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Guilin Seamild and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and UCloud Technology
The main advantage of trading using opposite Guilin Seamild and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.The idea behind Guilin Seamild Foods and UCloud Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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