Correlation Between Shenzhen Agricultural and Union Semiconductor
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By analyzing existing cross correlation between Shenzhen Agricultural Products and Union Semiconductor Co, you can compare the effects of market volatilities on Shenzhen Agricultural 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 Shenzhen Agricultural with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Agricultural and Union Semiconductor.
Diversification Opportunities for Shenzhen Agricultural and Union Semiconductor
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Union is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Agricultural Products and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Shenzhen Agricultural 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 Shenzhen Agricultural Products 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 Shenzhen Agricultural i.e., Shenzhen Agricultural and Union Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Agricultural and Union Semiconductor
Assuming the 90 days trading horizon Shenzhen Agricultural Products is expected to generate 1.02 times more return on investment than Union Semiconductor. However, Shenzhen Agricultural is 1.02 times more volatile than Union Semiconductor Co. It trades about 0.34 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.31 per unit of risk. If you would invest 683.00 in Shenzhen Agricultural Products on September 12, 2024 and sell it today you would earn a total of 89.00 from holding Shenzhen Agricultural Products or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Agricultural Products vs. Union Semiconductor Co
Performance |
| Timeline |
| Shenzhen Agricultural |
| Union Semiconductor |
Shenzhen Agricultural and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Agricultural and Union Semiconductor
The main advantage of trading using opposite Shenzhen Agricultural and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Agricultural 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.| Shenzhen Agricultural vs. Linewell Software Co | Shenzhen Agricultural vs. Huafa Industrial Co | Shenzhen Agricultural vs. Chengtun Mining Group | Shenzhen Agricultural vs. Sichuan Yahua Industrial |
| Union Semiconductor vs. Gansu Jiu Steel | Union Semiconductor vs. Shandong Mining Machinery | Union Semiconductor vs. Aba Chemicals Corp | Union Semiconductor vs. BlueFocus Communication Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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