Correlation Between Suzhou Fushilai and Unigroup Guoxin
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By analyzing existing cross correlation between Suzhou Fushilai Pharmaceutical and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Suzhou Fushilai 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 Suzhou Fushilai with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Fushilai and Unigroup Guoxin.
Diversification Opportunities for Suzhou Fushilai and Unigroup Guoxin
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suzhou and Unigroup is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Fushilai Pharmaceutical 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 Suzhou Fushilai 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 Suzhou Fushilai Pharmaceutical 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 Suzhou Fushilai i.e., Suzhou Fushilai and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Suzhou Fushilai and Unigroup Guoxin
Assuming the 90 days trading horizon Suzhou Fushilai Pharmaceutical is expected to generate 1.09 times more return on investment than Unigroup Guoxin. However, Suzhou Fushilai is 1.09 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.04 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.08 per unit of risk. If you would invest 2,307 in Suzhou Fushilai Pharmaceutical on November 2, 2024 and sell it today you would earn a total of 23.00 from holding Suzhou Fushilai Pharmaceutical or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Fushilai Pharmaceutical vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Suzhou Fushilai Phar |
| Unigroup Guoxin Micr |
Suzhou Fushilai and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Fushilai and Unigroup Guoxin
The main advantage of trading using opposite Suzhou Fushilai and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Fushilai 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.| Suzhou Fushilai vs. Impulse Qingdao Health | Suzhou Fushilai vs. Humanwell Healthcare Group | Suzhou Fushilai vs. Guangdong Wens Foodstuff | Suzhou Fushilai vs. Shandong Sinoglory Health |
| Unigroup Guoxin vs. Chengdu Kanghua Biological | Unigroup Guoxin vs. Suzhou Novoprotein Scientific | Unigroup Guoxin vs. Aluminum Corp of | Unigroup Guoxin vs. COL Digital Publishing |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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