Correlation Between Unigroup Guoxin and Jiangxi Selon
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Unigroup Guoxin and Jiangxi Selon 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 Unigroup Guoxin with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and Jiangxi Selon.
Diversification Opportunities for Unigroup Guoxin and Jiangxi Selon
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unigroup and Jiangxi is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial and Unigroup Guoxin 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 Unigroup Guoxin Microelectronics are associated (or correlated) with Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Unigroup Guoxin i.e., Unigroup Guoxin and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and Jiangxi Selon
Assuming the 90 days trading horizon Unigroup Guoxin Microelectronics is expected to under-perform the Jiangxi Selon. In addition to that, Unigroup Guoxin is 1.18 times more volatile than Jiangxi Selon Industrial. It trades about -0.05 of its total potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.29 per unit of volatility. If you would invest 560.00 in Jiangxi Selon Industrial on October 17, 2024 and sell it today you would earn a total of 277.00 from holding Jiangxi Selon Industrial or generate 49.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Unigroup Guoxin Microelectroni vs. Jiangxi Selon Industrial
Performance |
Timeline |
Unigroup Guoxin Micr |
Jiangxi Selon Industrial |
Unigroup Guoxin and Jiangxi Selon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Unigroup Guoxin and Jiangxi Selon
The main advantage of trading using opposite Unigroup Guoxin and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.Unigroup Guoxin vs. Easyhome New Retail | Unigroup Guoxin vs. Hubei Geoway Investment | Unigroup Guoxin vs. Beijing Kingsoft Office | Unigroup Guoxin vs. Chengdu Xingrong Investment |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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