Correlation Between Shandong Sanyuan and Unigroup Guoxin
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Shandong Sanyuan and Unigroup Guoxin 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 Sanyuan with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Unigroup Guoxin.
Diversification Opportunities for Shandong Sanyuan and Unigroup Guoxin
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Unigroup is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr and Shandong Sanyuan 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 Sanyuan Biotechnology are associated (or correlated) with Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Unigroup Guoxin
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.77 times more return on investment than Unigroup Guoxin. However, Shandong Sanyuan Biotechnology is 1.3 times less risky than Unigroup Guoxin. It trades about -0.01 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.04 per unit of risk. If you would invest 3,562 in Shandong Sanyuan Biotechnology on September 12, 2024 and sell it today you would lose (627.00) from holding Shandong Sanyuan Biotechnology or give up 17.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Unigroup Guoxin Micr |
Shandong Sanyuan and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Unigroup Guoxin
The main advantage of trading using opposite Shandong Sanyuan and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Shandong Sanyuan vs. China Petroleum Chemical | Shandong Sanyuan vs. PetroChina Co Ltd | Shandong Sanyuan vs. China State Construction | Shandong Sanyuan vs. China Railway Group |
| Unigroup Guoxin vs. Gansu Jiu Steel | Unigroup Guoxin vs. Shandong Mining Machinery | Unigroup Guoxin vs. Aba Chemicals Corp | Unigroup Guoxin vs. BlueFocus Communication Group |
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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