Correlation Between Sichuan Hebang and Unigroup Guoxin
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Sichuan Hebang 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 Sichuan Hebang with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Unigroup Guoxin.
Diversification Opportunities for Sichuan Hebang and Unigroup Guoxin
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Unigroup is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology 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 Sichuan Hebang 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 Sichuan Hebang Biotechnology 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 Sichuan Hebang i.e., Sichuan Hebang and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Unigroup Guoxin
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to generate 0.68 times more return on investment than Unigroup Guoxin. However, Sichuan Hebang Biotechnology is 1.46 times less risky than Unigroup Guoxin. It trades about -0.02 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about -0.02 per unit of risk. If you would invest 265.00 in Sichuan Hebang Biotechnology on September 25, 2024 and sell it today you would lose (53.00) from holding Sichuan Hebang Biotechnology or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Unigroup Guoxin Micr |
Sichuan Hebang and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Unigroup Guoxin
The main advantage of trading using opposite Sichuan Hebang and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang 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.| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Shandong Gold Mining |
| Unigroup Guoxin vs. Industrial and Commercial | Unigroup Guoxin vs. China Construction Bank | Unigroup Guoxin vs. Agricultural Bank of | Unigroup Guoxin vs. Bank of China |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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