Correlation Between Guangxi Wuzhou and Unigroup Guoxin
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Unigroup Guoxin.
Diversification Opportunities for Guangxi Wuzhou and Unigroup Guoxin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangxi and Unigroup is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications 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 Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Unigroup Guoxin
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.74 times more return on investment than Unigroup Guoxin. However, Guangxi Wuzhou Communications is 1.34 times less risky than Unigroup Guoxin. It trades about 0.03 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 329.00 in Guangxi Wuzhou Communications on September 12, 2024 and sell it today you would earn a total of 71.00 from holding Guangxi Wuzhou Communications or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Unigroup Guoxin Micr |
Guangxi Wuzhou and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Unigroup Guoxin
The main advantage of trading using opposite Guangxi Wuzhou and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. Bank of China | Guangxi Wuzhou vs. PetroChina Co Ltd |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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