Correlation Between Uxi Unicomp and China Longyuan
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By analyzing existing cross correlation between Uxi Unicomp Technology and China Longyuan Power, you can compare the effects of market volatilities on Uxi Unicomp and China Longyuan 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 Uxi Unicomp with a short position of China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uxi Unicomp and China Longyuan.
Diversification Opportunities for Uxi Unicomp and China Longyuan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Uxi and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Uxi Unicomp Technology and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power and Uxi Unicomp 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 Uxi Unicomp Technology are associated (or correlated) with China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Uxi Unicomp i.e., Uxi Unicomp and China Longyuan go up and down completely randomly.
Pair Corralation between Uxi Unicomp and China Longyuan
Assuming the 90 days trading horizon Uxi Unicomp Technology is expected to generate 2.22 times more return on investment than China Longyuan. However, Uxi Unicomp is 2.22 times more volatile than China Longyuan Power. It trades about 0.32 of its potential returns per unit of risk. China Longyuan Power is currently generating about 0.04 per unit of risk. If you would invest 4,545 in Uxi Unicomp Technology on November 7, 2024 and sell it today you would earn a total of 641.00 from holding Uxi Unicomp Technology or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uxi Unicomp Technology vs. China Longyuan Power
Performance |
| Timeline |
| Uxi Unicomp Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Longyuan Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Uxi Unicomp and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uxi Unicomp and China Longyuan
The main advantage of trading using opposite Uxi Unicomp and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uxi Unicomp position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.The idea behind Uxi Unicomp Technology and China Longyuan Power pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Global Correlations module to find global opportunities by holding instruments from different markets.
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