Correlation Between Caihong Display and Unigroup Guoxin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Caihong Display Devices and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Unigroup Guoxin.
Diversification Opportunities for Caihong Display and Unigroup Guoxin
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caihong and Unigroup is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices 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 Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Caihong Display and Unigroup Guoxin
Assuming the 90 days trading horizon Caihong Display Devices is expected to under-perform the Unigroup Guoxin. In addition to that, Caihong Display is 1.11 times more volatile than Unigroup Guoxin Microelectronics. It trades about -0.11 of its total potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.08 per unit of volatility. If you would invest 6,731 in Unigroup Guoxin Microelectronics on November 30, 2024 and sell it today you would lose (566.00) from holding Unigroup Guoxin Microelectronics or give up 8.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Caihong Display Devices |
| Unigroup Guoxin Micr |
Caihong Display and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Unigroup Guoxin
The main advantage of trading using opposite Caihong Display and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Suzhou Oriental Semiconductor | Caihong Display vs. Guangzhou Seagull Kitchen | Caihong Display vs. Southchip Semiconductor Technology | Caihong Display vs. Gan Yuan Foods |
| Unigroup Guoxin vs. Jiangxi Copper Co | Unigroup Guoxin vs. Montage Technology Co | Unigroup Guoxin vs. Longshine Technology Co | Unigroup Guoxin vs. JCHX Mining Management |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |