Correlation Between Pengxin International and Union Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Pengxin International Mining and Union Semiconductor Co, you can compare the effects of market volatilities on Pengxin International 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 Pengxin International with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pengxin International and Union Semiconductor.
Diversification Opportunities for Pengxin International and Union Semiconductor
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pengxin and Union is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Pengxin International Mining and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Pengxin International 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 Pengxin International Mining 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 Pengxin International i.e., Pengxin International and Union Semiconductor go up and down completely randomly.
Pair Corralation between Pengxin International and Union Semiconductor
Assuming the 90 days trading horizon Pengxin International Mining is expected to generate 0.91 times more return on investment than Union Semiconductor. However, Pengxin International Mining is 1.1 times less risky than Union Semiconductor. It trades about 0.22 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 209.00 in Pengxin International Mining on September 7, 2024 and sell it today you would earn a total of 121.00 from holding Pengxin International Mining or generate 57.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Pengxin International Mining vs. Union Semiconductor Co
Performance |
Timeline |
Pengxin International |
Union Semiconductor |
Pengxin International and Union Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pengxin International and Union Semiconductor
The main advantage of trading using opposite Pengxin International and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pengxin International 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.The idea behind Pengxin International Mining and Union Semiconductor Co 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.
Union Semiconductor vs. Industrial and Commercial | Union Semiconductor vs. China Construction Bank | Union Semiconductor vs. Bank of China | Union Semiconductor vs. Agricultural Bank of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |