Correlation Between Shenyang Huitian and Union Semiconductor
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Union Semiconductor Co, you can compare the effects of market volatilities on Shenyang Huitian 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 Shenyang Huitian with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Union Semiconductor.
Diversification Opportunities for Shenyang Huitian and Union Semiconductor
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Union is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Shenyang Huitian 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 Shenyang Huitian Thermal 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 Shenyang Huitian i.e., Shenyang Huitian and Union Semiconductor go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Union Semiconductor
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.32 times more return on investment than Union Semiconductor. However, Shenyang Huitian is 1.32 times more volatile than Union Semiconductor Co. It trades about 0.02 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.17 per unit of risk. If you would invest 396.00 in Shenyang Huitian Thermal on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Shenyang Huitian Thermal or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Union Semiconductor Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Union Semiconductor |
Shenyang Huitian and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Union Semiconductor
The main advantage of trading using opposite Shenyang Huitian and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian 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.| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
| Union Semiconductor vs. Chengdu Xinzhu RoadBridge | Union Semiconductor vs. Impulse Qingdao Health | Union Semiconductor vs. Youngy Health Co | Union Semiconductor vs. Shanghai Metersbonwe FashionAccessories |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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