Correlation Between UCloud Technology and Jiangsu Bioperfectus

Can any of the company-specific risk be diversified away by investing in both UCloud Technology and Jiangsu Bioperfectus at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining UCloud Technology and Jiangsu Bioperfectus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UCloud Technology Co and Jiangsu Bioperfectus Technologies, you can compare the effects of market volatilities on UCloud Technology and Jiangsu Bioperfectus 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 UCloud Technology with a short position of Jiangsu Bioperfectus. Check out your portfolio center. Please also check ongoing floating volatility patterns of UCloud Technology and Jiangsu Bioperfectus.

Diversification Opportunities for UCloud Technology and Jiangsu Bioperfectus

-0.22

Correlation Coefficient

UCloud Technology  Jiangsu Bioperfectus

Very good diversification

The 3 months correlation between UCloud and Jiangsu is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding UCloud Technology Co and Jiangsu Bioperfectus Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Bioperfectus and UCloud Technology 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 UCloud Technology Co are associated (or correlated) with Jiangsu Bioperfectus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Bioperfectus has no effect on the direction of UCloud Technology i.e., UCloud Technology and Jiangsu Bioperfectus go up and down completely randomly.

Pair Corralation between UCloud Technology and Jiangsu Bioperfectus

Assuming the 90 days trading horizon UCloud Technology Co is expected to under-perform the Jiangsu Bioperfectus. In addition to that, UCloud Technology is 1.56 times more volatile than Jiangsu Bioperfectus Technologies. It trades about -0.01 of its total potential returns per unit of risk. Jiangsu Bioperfectus Technologies is currently generating about 0.04 per unit of volatility. If you would invest  5,380  in Jiangsu Bioperfectus Technologies on October 3, 2024 and sell it today you would earn a total of  1,192  from holding Jiangsu Bioperfectus Technologies or generate 22.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

UCloud Technology Co  vs.  Jiangsu Bioperfectus Technolog

UCloud Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UCloud Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Jiangsu Bioperfectus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jiangsu Bioperfectus Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with UCloud Technology and Jiangsu Bioperfectus

The main advantage of trading using opposite UCloud Technology and Jiangsu Bioperfectus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UCloud Technology position performs unexpectedly, Jiangsu Bioperfectus 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 Jiangsu Bioperfectus will offset losses from the drop in Jiangsu Bioperfectus' long position.

The idea behind UCloud Technology Co and Jiangsu Bioperfectus Technologies 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.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.