Correlation Between Nanjing Putian and Uxi Unicomp
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Uxi Unicomp Technology, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Uxi Unicomp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Uxi Unicomp.
Diversification Opportunities for Nanjing Putian and Uxi Unicomp
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Uxi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati 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 Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Uxi Unicomp go up and down completely randomly.
Pair Corralation between Nanjing Putian and Uxi Unicomp
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.36 times more return on investment than Uxi Unicomp. However, Nanjing Putian is 1.36 times more volatile than Uxi Unicomp Technology. It trades about 0.18 of its potential returns per unit of risk. Uxi Unicomp Technology is currently generating about -0.03 per unit of risk. If you would invest 387.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 61.00 from holding Nanjing Putian Telecommunications or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Uxi Unicomp Technology
Performance |
| Timeline |
| Nanjing Putian Telec |
| Uxi Unicomp Technology |
Nanjing Putian and Uxi Unicomp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Uxi Unicomp
The main advantage of trading using opposite Nanjing Putian and Uxi Unicomp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
| Uxi Unicomp vs. Cultural Investment Holdings | Uxi Unicomp vs. Gome Telecom Equipment | Uxi Unicomp vs. Bus Online Co | Uxi Unicomp vs. Holitech Technology Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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