Correlation Between UNION and Joint Stock
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By analyzing existing cross correlation between UNION ELEC 4 and Joint Stock, you can compare the effects of market volatilities on UNION and Joint Stock 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 UNION with a short position of Joint Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNION and Joint Stock.
Diversification Opportunities for UNION and Joint Stock
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNION and Joint is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding UNION ELEC 4 and Joint Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Stock and UNION 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 UNION ELEC 4 are associated (or correlated) with Joint Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Stock has no effect on the direction of UNION i.e., UNION and Joint Stock go up and down completely randomly.
Pair Corralation between UNION and Joint Stock
Assuming the 90 days trading horizon UNION ELEC 4 is expected to generate 52.61 times more return on investment than Joint Stock. However, UNION is 52.61 times more volatile than Joint Stock. It trades about 0.14 of its potential returns per unit of risk. Joint Stock is currently generating about 0.08 per unit of risk. If you would invest 8,037 in UNION ELEC 4 on September 12, 2024 and sell it today you would earn a total of 235.00 from holding UNION ELEC 4 or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.39% |
| Values | Daily Returns |
UNION ELEC 4 vs. Joint Stock
Performance |
| Timeline |
| UNION ELEC 4 |
| Joint Stock |
UNION and Joint Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNION and Joint Stock
The main advantage of trading using opposite UNION and Joint Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNION position performs unexpectedly, Joint Stock 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 Joint Stock will offset losses from the drop in Joint Stock's long position.The idea behind UNION ELEC 4 and Joint Stock 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.| Joint Stock vs. SentinelOne | Joint Stock vs. BlackBerry | Joint Stock vs. Global Blue Group | Joint Stock vs. Aurora Mobile |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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