Correlation Between Chengdu Kanghua and Uxi Unicomp
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By analyzing existing cross correlation between Chengdu Kanghua Biological and Uxi Unicomp Technology, you can compare the effects of market volatilities on Chengdu Kanghua 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 Chengdu Kanghua with a short position of Uxi Unicomp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Kanghua and Uxi Unicomp.
Diversification Opportunities for Chengdu Kanghua and Uxi Unicomp
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Uxi is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Kanghua Biological 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 Chengdu Kanghua 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 Chengdu Kanghua Biological 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 Chengdu Kanghua i.e., Chengdu Kanghua and Uxi Unicomp go up and down completely randomly.
Pair Corralation between Chengdu Kanghua and Uxi Unicomp
Assuming the 90 days trading horizon Chengdu Kanghua is expected to generate 1.51 times less return on investment than Uxi Unicomp. In addition to that, Chengdu Kanghua is 1.02 times more volatile than Uxi Unicomp Technology. It trades about 0.1 of its total potential returns per unit of risk. Uxi Unicomp Technology is currently generating about 0.16 per unit of volatility. If you would invest 3,788 in Uxi Unicomp Technology on September 12, 2024 and sell it today you would earn a total of 1,662 from holding Uxi Unicomp Technology or generate 43.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Kanghua Biological vs. Uxi Unicomp Technology
Performance |
| Timeline |
| Chengdu Kanghua Biol |
| Uxi Unicomp Technology |
Chengdu Kanghua and Uxi Unicomp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Kanghua and Uxi Unicomp
The main advantage of trading using opposite Chengdu Kanghua and Uxi Unicomp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Kanghua 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.| Chengdu Kanghua vs. Bank of Suzhou | Chengdu Kanghua vs. Peoples Insurance of | Chengdu Kanghua vs. Yonyou Auto Information | Chengdu Kanghua vs. Longmaster Information Tech |
| Uxi Unicomp vs. Yuan Longping High tech | Uxi Unicomp vs. Shanghai Broadband Technology | Uxi Unicomp vs. Northking Information Technology | 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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