Correlation Between Xiangyang Automobile and Union Semiconductor
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Union Semiconductor Co, you can compare the effects of market volatilities on Xiangyang Automobile and Union Semiconductor 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 Xiangyang Automobile with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Union Semiconductor.
Diversification Opportunities for Xiangyang Automobile and Union Semiconductor
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Union is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Xiangyang Automobile 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 Xiangyang Automobile Bearing are associated (or correlated) with Union Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Semiconductor has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Union Semiconductor go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Union Semiconductor
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 0.95 times more return on investment than Union Semiconductor. However, Xiangyang Automobile Bearing is 1.05 times less risky than Union Semiconductor. It trades about 0.17 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.15 per unit of risk. If you would invest 460.00 in Xiangyang Automobile Bearing on September 7, 2024 and sell it today you would earn a total of 200.00 from holding Xiangyang Automobile Bearing or generate 43.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiangyang Automobile Bearing vs. Union Semiconductor Co
Performance |
Timeline |
Xiangyang Automobile |
Union Semiconductor |
Xiangyang Automobile and Union Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangyang Automobile and Union Semiconductor
The main advantage of trading using opposite Xiangyang Automobile and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Union Semiconductor 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 Union Semiconductor will offset losses from the drop in Union Semiconductor's long position.Xiangyang Automobile vs. Shenzhen MYS Environmental | Xiangyang Automobile vs. AVIC Fund Management | Xiangyang Automobile vs. Shanxi Xishan Coal | Xiangyang Automobile vs. Bosera ChiNext ETF |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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