Correlation Between Gan Yuan and UCloud Technology
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By analyzing existing cross correlation between Gan Yuan Foods and UCloud Technology Co, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and UCloud Technology.
Diversification Opportunities for Gan Yuan and UCloud Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gan and UCloud is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan 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 Gan Yuan 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 Gan Yuan 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 Gan Yuan i.e., Gan Yuan and UCloud Technology go up and down completely randomly.
Pair Corralation between Gan Yuan and UCloud Technology
Assuming the 90 days trading horizon Gan Yuan is expected to generate 3.55 times less return on investment than UCloud Technology. But when comparing it to its historical volatility, Gan Yuan Foods is 1.67 times less risky than UCloud Technology. It trades about 0.01 of its potential returns per unit of risk. UCloud Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,962 in UCloud Technology Co on November 8, 2024 and sell it today you would earn a total of 30.00 from holding UCloud Technology Co or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. UCloud Technology Co
Performance |
| Timeline |
| Gan Yuan Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| UCloud Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Gan Yuan and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and UCloud Technology
The main advantage of trading using opposite Gan Yuan and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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 Gan Yuan 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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