Correlation Between Tengda Construction and UCloud Technology
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By analyzing existing cross correlation between Tengda Construction Group and UCloud Technology Co, you can compare the effects of market volatilities on Tengda Construction and UCloud Technology 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 Tengda Construction with a short position of UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tengda Construction and UCloud Technology.
Diversification Opportunities for Tengda Construction and UCloud Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tengda and UCloud is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Tengda Construction Group and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology and Tengda Construction 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 Tengda Construction Group are associated (or correlated) with UCloud Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCloud Technology has no effect on the direction of Tengda Construction i.e., Tengda Construction and UCloud Technology go up and down completely randomly.
Pair Corralation between Tengda Construction and UCloud Technology
Assuming the 90 days trading horizon Tengda Construction is expected to generate 6.59 times less return on investment than UCloud Technology. But when comparing it to its historical volatility, Tengda Construction Group is 2.3 times less risky than UCloud Technology. It trades about 0.01 of its potential returns per unit of risk. UCloud Technology Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,205 in UCloud Technology Co on September 12, 2024 and sell it today you would earn a total of 345.00 from holding UCloud Technology Co or generate 28.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tengda Construction Group vs. UCloud Technology Co
Performance |
| Timeline |
| Tengda Construction |
| UCloud Technology |
Tengda Construction and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tengda Construction and UCloud Technology
The main advantage of trading using opposite Tengda Construction and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tengda Construction position performs unexpectedly, UCloud Technology 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 UCloud Technology will offset losses from the drop in UCloud Technology's long position.| Tengda Construction vs. Agricultural Bank of | Tengda Construction vs. Industrial and Commercial | Tengda Construction vs. Bank of China | Tengda Construction vs. PetroChina Co Ltd |
| UCloud Technology vs. Shanghai Construction Group | UCloud Technology vs. Tengda Construction Group | UCloud Technology vs. Linzhou Heavy Machinery | UCloud Technology vs. Shantui Construction Machinery |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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