Correlation Between Hygon Information and Unigroup Guoxin
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By analyzing existing cross correlation between Hygon Information Technology and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Unigroup Guoxin.
Diversification Opportunities for Hygon Information and Unigroup Guoxin
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hygon and Unigroup is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology 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 Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Hygon Information and Unigroup Guoxin
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.34 times more return on investment than Unigroup Guoxin. However, Hygon Information is 1.34 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.05 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 9,197 in Hygon Information Technology on September 25, 2024 and sell it today you would earn a total of 4,473 from holding Hygon Information Technology or generate 48.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Hygon Information |
| Unigroup Guoxin Micr |
Hygon Information and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Unigroup Guoxin
The main advantage of trading using opposite Hygon Information and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. Digital China Information | Hygon Information vs. Hainan Haiqi Transportation | Hygon Information vs. Emdoor Information Co | Hygon Information vs. Zhuhai Comleader Information |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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