Correlation Between New China and UCloud Technology
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By analyzing existing cross correlation between New China Life and UCloud Technology Co, you can compare the effects of market volatilities on New China 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 New China with a short position of UCloud Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and UCloud Technology.
Diversification Opportunities for New China and UCloud Technology
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and UCloud is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and UCloud Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCloud Technology and New China 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 New China Life 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 New China i.e., New China and UCloud Technology go up and down completely randomly.
Pair Corralation between New China and UCloud Technology
Assuming the 90 days trading horizon New China Life is expected to under-perform the UCloud Technology. But the stock apears to be less risky and, when comparing its historical volatility, New China Life is 1.07 times less risky than UCloud Technology. The stock trades about -0.04 of its potential returns per unit of risk. The UCloud Technology Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,579 in UCloud Technology Co on September 12, 2024 and sell it today you would lose (29.00) from holding UCloud Technology Co or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. UCloud Technology Co
Performance |
| Timeline |
| New China Life |
| UCloud Technology |
New China and UCloud Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and UCloud Technology
The main advantage of trading using opposite New China and UCloud Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.| New China vs. HeBei Jinniu Chemical | New China vs. Zhejiang Construction Investment | New China vs. Lianhe Chemical Technology | New China vs. Nuode Investment Co |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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