Correlation Between Uxi Unicomp and Shandong Hongchuang
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By analyzing existing cross correlation between Uxi Unicomp Technology and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Uxi Unicomp and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uxi Unicomp and Shandong Hongchuang.
Diversification Opportunities for Uxi Unicomp and Shandong Hongchuang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Uxi and Shandong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Uxi Unicomp Technology and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Uxi Unicomp i.e., Uxi Unicomp and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Uxi Unicomp and Shandong Hongchuang
Assuming the 90 days trading horizon Uxi Unicomp Technology is expected to under-perform the Shandong Hongchuang. But the stock apears to be less risky and, when comparing its historical volatility, Uxi Unicomp Technology is 1.01 times less risky than Shandong Hongchuang. The stock trades about -0.05 of its potential returns per unit of risk. The Shandong Hongchuang Aluminum is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 720.00 in Shandong Hongchuang Aluminum on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Shandong Hongchuang Aluminum or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uxi Unicomp Technology vs. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Uxi Unicomp Technology |
| Shandong Hongchuang |
Uxi Unicomp and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uxi Unicomp and Shandong Hongchuang
The main advantage of trading using opposite Uxi Unicomp and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uxi Unicomp position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang's long position.| Uxi Unicomp vs. New China Life | Uxi Unicomp vs. Ming Yang Smart | Uxi Unicomp vs. 159681 | Uxi Unicomp vs. 159005 |
| Shandong Hongchuang vs. Dareway Software Co | Shandong Hongchuang vs. Anji Foodstuff Co | Shandong Hongchuang vs. Beijing Yanjing Brewery | Shandong Hongchuang vs. Yankershop Food 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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