Correlation Between Jiangsu Xinri and Union Semiconductor
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and Union Semiconductor Co, you can compare the effects of market volatilities on Jiangsu Xinri 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 Jiangsu Xinri with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and Union Semiconductor.
Diversification Opportunities for Jiangsu Xinri and Union Semiconductor
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Union is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Jiangsu Xinri 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 Jiangsu Xinri E Vehicle 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 Jiangsu Xinri i.e., Jiangsu Xinri and Union Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and Union Semiconductor
Assuming the 90 days trading horizon Jiangsu Xinri is expected to generate 2.61 times less return on investment than Union Semiconductor. But when comparing it to its historical volatility, Jiangsu Xinri E Vehicle is 1.61 times less risky than Union Semiconductor. It trades about 0.09 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Union Semiconductor Co on September 6, 2024 and sell it today you would earn a total of 248.00 from holding Union Semiconductor Co or generate 36.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.28% |
Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. Union Semiconductor Co
Performance |
Timeline |
Jiangsu Xinri E |
Union Semiconductor |
Jiangsu Xinri and Union Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Xinri and Union Semiconductor
The main advantage of trading using opposite Jiangsu Xinri and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri 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.Jiangsu Xinri vs. Shandong Publishing Media | Jiangsu Xinri vs. Shuhua Sports Co | Jiangsu Xinri vs. Lander Sports Development | Jiangsu Xinri vs. Rising Nonferrous Metals |
Union Semiconductor vs. Chengdu B ray Media | Union Semiconductor vs. Lander Sports Development | Union Semiconductor vs. Jiangxi Naipu Mining | Union Semiconductor vs. Heilongjiang Publishing Media |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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