Correlation Between Unigroup Guoxin and China Railway
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By analyzing existing cross correlation between Unigroup Guoxin Microelectronics and China Railway Construction, you can compare the effects of market volatilities on Unigroup Guoxin and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unigroup Guoxin and China Railway.
Diversification Opportunities for Unigroup Guoxin and China Railway
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Unigroup and China is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Unigroup Guoxin Microelectroni and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Unigroup Guoxin i.e., Unigroup Guoxin and China Railway go up and down completely randomly.
Pair Corralation between Unigroup Guoxin and China Railway
Assuming the 90 days trading horizon Unigroup Guoxin is expected to generate 1.14 times less return on investment than China Railway. In addition to that, Unigroup Guoxin is 1.53 times more volatile than China Railway Construction. It trades about 0.02 of its total potential returns per unit of risk. China Railway Construction is currently generating about 0.03 per unit of volatility. If you would invest 380.00 in China Railway Construction on October 5, 2024 and sell it today you would earn a total of 43.00 from holding China Railway Construction or generate 11.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.58% |
Values | Daily Returns |
Unigroup Guoxin Microelectroni vs. China Railway Construction
Performance |
Timeline |
Unigroup Guoxin Micr |
China Railway Constr |
Unigroup Guoxin and China Railway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Unigroup Guoxin and China Railway
The main advantage of trading using opposite Unigroup Guoxin and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unigroup Guoxin position performs unexpectedly, China Railway 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 Railway will offset losses from the drop in China Railway's long position.Unigroup Guoxin vs. Gansu Jiu Steel | Unigroup Guoxin vs. Changzhou Almaden Co | Unigroup Guoxin vs. Aba Chemicals Corp | Unigroup Guoxin vs. Hwabao WP CSI |
China Railway vs. Oppein Home Group | China Railway vs. Hainan Mining Co | China Railway vs. Guangdong Silvere Sci | China Railway vs. Mengtian Home Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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