Correlation Between Kuangda Technology and Union Semiconductor
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By analyzing existing cross correlation between Kuangda Technology Group and Union Semiconductor Co, you can compare the effects of market volatilities on Kuangda Technology 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 Kuangda Technology with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuangda Technology and Union Semiconductor.
Diversification Opportunities for Kuangda Technology and Union Semiconductor
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuangda and Union is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kuangda Technology Group and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Kuangda Technology 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 Kuangda Technology Group 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 Kuangda Technology i.e., Kuangda Technology and Union Semiconductor go up and down completely randomly.
Pair Corralation between Kuangda Technology and Union Semiconductor
Assuming the 90 days trading horizon Kuangda Technology Group is expected to generate 0.86 times more return on investment than Union Semiconductor. However, Kuangda Technology Group is 1.16 times less risky than Union Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.01 per unit of risk. If you would invest 486.00 in Kuangda Technology Group on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Kuangda Technology Group or generate 22.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuangda Technology Group vs. Union Semiconductor Co
Performance |
| Timeline |
| Kuangda Technology |
| Union Semiconductor |
Kuangda Technology and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuangda Technology and Union Semiconductor
The main advantage of trading using opposite Kuangda Technology and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuangda Technology 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.| Kuangda Technology vs. Lutian Machinery Co | Kuangda Technology vs. PetroChina Co Ltd | Kuangda Technology vs. Bank of China | Kuangda Technology vs. Gansu Jiu Steel |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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