Correlation Between Guotai Epoint and Suzhou UIGreen
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By analyzing existing cross correlation between Guotai Epoint Software and Suzhou UIGreen Micro, you can compare the effects of market volatilities on Guotai Epoint and Suzhou UIGreen 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 Guotai Epoint with a short position of Suzhou UIGreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Suzhou UIGreen.
Diversification Opportunities for Guotai Epoint and Suzhou UIGreen
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guotai and Suzhou is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Suzhou UIGreen Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou UIGreen Micro and Guotai Epoint 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 Guotai Epoint Software are associated (or correlated) with Suzhou UIGreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou UIGreen Micro has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and Suzhou UIGreen go up and down completely randomly.
Pair Corralation between Guotai Epoint and Suzhou UIGreen
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the Suzhou UIGreen. But the stock apears to be less risky and, when comparing its historical volatility, Guotai Epoint Software is 2.57 times less risky than Suzhou UIGreen. The stock trades about -0.19 of its potential returns per unit of risk. The Suzhou UIGreen Micro is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,770 in Suzhou UIGreen Micro on October 25, 2024 and sell it today you would earn a total of 729.00 from holding Suzhou UIGreen Micro or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guotai Epoint Software vs. Suzhou UIGreen Micro
Performance |
| Timeline |
| Guotai Epoint Software |
| Suzhou UIGreen Micro |
Guotai Epoint and Suzhou UIGreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Suzhou UIGreen
The main advantage of trading using opposite Guotai Epoint and Suzhou UIGreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, Suzhou UIGreen 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 Suzhou UIGreen will offset losses from the drop in Suzhou UIGreen's long position.| Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. NAURA Technology Group | Guotai Epoint vs. APT Medical | Guotai Epoint vs. BYD Co Ltd |
| Suzhou UIGreen vs. Shanghai Yaoji Playing | Suzhou UIGreen vs. Luolai Home Textile | Suzhou UIGreen vs. Xiamen Insight Investment | Suzhou UIGreen vs. UE Furniture 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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