Correlation Between Beijing Wantai and Uxi Unicomp
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By analyzing existing cross correlation between Beijing Wantai Biological and Uxi Unicomp Technology, you can compare the effects of market volatilities on Beijing Wantai and Uxi Unicomp 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 Beijing Wantai with a short position of Uxi Unicomp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Uxi Unicomp.
Diversification Opportunities for Beijing Wantai and Uxi Unicomp
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Uxi is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Uxi Unicomp Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxi Unicomp Technology and Beijing Wantai 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 Beijing Wantai Biological are associated (or correlated) with Uxi Unicomp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uxi Unicomp Technology has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Uxi Unicomp go up and down completely randomly.
Pair Corralation between Beijing Wantai and Uxi Unicomp
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 3.33 times less return on investment than Uxi Unicomp. But when comparing it to its historical volatility, Beijing Wantai Biological is 1.95 times less risky than Uxi Unicomp. It trades about 0.09 of its potential returns per unit of risk. Uxi Unicomp Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,788 in Uxi Unicomp Technology on September 12, 2024 and sell it today you would earn a total of 1,662 from holding Uxi Unicomp Technology or generate 43.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Uxi Unicomp Technology
Performance |
| Timeline |
| Beijing Wantai Biological |
| Uxi Unicomp Technology |
Beijing Wantai and Uxi Unicomp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Uxi Unicomp
The main advantage of trading using opposite Beijing Wantai and Uxi Unicomp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Uxi Unicomp 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 Uxi Unicomp will offset losses from the drop in Uxi Unicomp's long position.| Beijing Wantai vs. Jiangsu Yanghe Brewery | Beijing Wantai vs. Ningxia Building Materials | Beijing Wantai vs. Super Dragon Engineering Plastics | Beijing Wantai vs. Sinosteel Luonai Materials |
| Uxi Unicomp vs. Yuan Longping High tech | Uxi Unicomp vs. Shanghai Broadband Technology | Uxi Unicomp vs. Northking Information Technology | Uxi Unicomp vs. Holitech Technology Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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