Correlation Between Xiamen ITG and Universal Scientific
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen ITG Group and Universal Scientific Industrial, you can compare the effects of market volatilities on Xiamen ITG and Universal Scientific 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 Xiamen ITG with a short position of Universal Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen ITG and Universal Scientific.
Diversification Opportunities for Xiamen ITG and Universal Scientific
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Universal is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen ITG Group and Universal Scientific Industria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Scientific and Xiamen ITG 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 Xiamen ITG Group are associated (or correlated) with Universal Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Scientific has no effect on the direction of Xiamen ITG i.e., Xiamen ITG and Universal Scientific go up and down completely randomly.
Pair Corralation between Xiamen ITG and Universal Scientific
Assuming the 90 days trading horizon Xiamen ITG is expected to generate 1.95 times less return on investment than Universal Scientific. But when comparing it to its historical volatility, Xiamen ITG Group is 1.38 times less risky than Universal Scientific. It trades about 0.01 of its potential returns per unit of risk. Universal Scientific Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,577 in Universal Scientific Industrial on September 26, 2024 and sell it today you would lose (6.00) from holding Universal Scientific Industrial or give up 0.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen ITG Group vs. Universal Scientific Industria
Performance |
Timeline |
Xiamen ITG Group |
Universal Scientific |
Xiamen ITG and Universal Scientific Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen ITG and Universal Scientific
The main advantage of trading using opposite Xiamen ITG and Universal Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen ITG position performs unexpectedly, Universal Scientific 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 Universal Scientific will offset losses from the drop in Universal Scientific's long position.Xiamen ITG vs. China Life Insurance | Xiamen ITG vs. Cinda Securities Co | Xiamen ITG vs. Piotech Inc A | Xiamen ITG vs. Dongxing Sec Co |
Universal Scientific vs. Industrial and Commercial | Universal Scientific vs. China Construction Bank | Universal Scientific vs. Agricultural Bank of | Universal Scientific vs. Bank of China |
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.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |