Correlation Between Union Semiconductor and Zhejiang Kingland
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By analyzing existing cross correlation between Union Semiconductor Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Union Semiconductor and Zhejiang Kingland 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 Union Semiconductor with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Zhejiang Kingland.
Diversification Opportunities for Union Semiconductor and Zhejiang Kingland
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Union and Zhejiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Union Semiconductor 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 Union Semiconductor Co are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Union Semiconductor and Zhejiang Kingland
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 1.63 times more return on investment than Zhejiang Kingland. However, Union Semiconductor is 1.63 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.15 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.14 per unit of risk. 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 | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Union Semiconductor Co vs. Zhejiang Kingland Pipeline
Performance |
Timeline |
Union Semiconductor |
Zhejiang Kingland |
Union Semiconductor and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Union Semiconductor and Zhejiang Kingland
The main advantage of trading using opposite Union Semiconductor and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.Union Semiconductor vs. Industrial and Commercial | Union Semiconductor vs. Agricultural Bank of | Union Semiconductor vs. China Construction Bank | Union Semiconductor vs. Bank of China |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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