Correlation Between Shenyang Chemical and Union Semiconductor
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By analyzing existing cross correlation between Shenyang Chemical Industry and Union Semiconductor Co, you can compare the effects of market volatilities on Shenyang Chemical 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 Chemical with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Union Semiconductor.
Diversification Opportunities for Shenyang Chemical and Union Semiconductor
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenyang and Union is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry 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 Chemical 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 Chemical Industry 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 Chemical i.e., Shenyang Chemical and Union Semiconductor go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Union Semiconductor
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Union Semiconductor. In addition to that, Shenyang Chemical is 1.66 times more volatile than Union Semiconductor Co. It trades about -0.18 of its total potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.15 per unit of volatility. If you would invest 910.00 in Union Semiconductor Co on October 17, 2024 and sell it today you would lose (72.00) from holding Union Semiconductor Co or give up 7.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Union Semiconductor Co
Performance |
| Timeline |
| Shenyang Chemical |
| Union Semiconductor |
Shenyang Chemical and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Union Semiconductor
The main advantage of trading using opposite Shenyang Chemical and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical 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 Chemical vs. Tongyu Communication | Shenyang Chemical vs. State Grid InformationCommunication | Shenyang Chemical vs. Qingdao Foods Co | Shenyang Chemical vs. Dongfeng Automobile Co |
| Union Semiconductor vs. Emdoor Information Co | Union Semiconductor vs. AVCON Information Tech | Union Semiconductor vs. Guangzhou Ruoyuchen Information | Union Semiconductor vs. Fujian Boss Software |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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