Correlation Between Chongqing Road and Unigroup Guoxin
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By analyzing existing cross correlation between Chongqing Road Bridge and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Chongqing Road 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 Chongqing Road with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Unigroup Guoxin.
Diversification Opportunities for Chongqing Road and Unigroup Guoxin
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Unigroup is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge 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 Chongqing Road 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 Chongqing Road Bridge 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 Chongqing Road i.e., Chongqing Road and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Chongqing Road and Unigroup Guoxin
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to generate 1.11 times more return on investment than Unigroup Guoxin. However, Chongqing Road is 1.11 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.02 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.05 per unit of risk. If you would invest 486.00 in Chongqing Road Bridge on October 13, 2024 and sell it today you would earn a total of 36.00 from holding Chongqing Road Bridge or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Chongqing Road Bridge |
| Unigroup Guoxin Micr |
Chongqing Road and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Unigroup Guoxin
The main advantage of trading using opposite Chongqing Road and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road 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.| Chongqing Road vs. Cowealth Medical China | Chongqing Road vs. Qtone Education Group | Chongqing Road vs. Xiangyu Medical Co | Chongqing Road vs. Offcn Education Technology |
| Unigroup Guoxin vs. Chongqing Road Bridge | Unigroup Guoxin vs. Zhengping RoadBridge Constr | Unigroup Guoxin vs. Jiujiang Shanshui Technology | Unigroup Guoxin vs. Changchun UP Optotech |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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