Correlation Between Bank of Communications and UCloud Technology
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By analyzing existing cross correlation between Bank of Communications and UCloud Technology Co, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and UCloud Technology.
Diversification Opportunities for Bank of Communications and UCloud Technology
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and UCloud is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology and Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and UCloud Technology go up and down completely randomly.
Pair Corralation between Bank of Communications and UCloud Technology
Assuming the 90 days trading horizon Bank of Communications is expected to generate 1.02 times less return on investment than UCloud Technology. But when comparing it to its historical volatility, Bank of Communications is 3.13 times less risky than UCloud Technology. It trades about 0.09 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 1,265 in UCloud Technology Co on September 4, 2024 and sell it today you would earn a total of 212.00 from holding UCloud Technology Co or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. UCloud Technology Co
Performance |
| Timeline |
| Bank of Communications |
| UCloud Technology |
Bank of Communications and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and UCloud Technology
The main advantage of trading using opposite Bank of Communications and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Ming Yang Smart | Bank of Communications vs. 159681 | Bank of Communications vs. 159005 | Bank of Communications vs. Loctek Ergonomic Technology |
| UCloud Technology vs. New China Life | UCloud Technology vs. Ming Yang Smart | UCloud Technology vs. 159681 | UCloud Technology vs. 159005 |
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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