Correlation Between Fujian Longzhou and Union Semiconductor
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Union Semiconductor Co, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Union Semiconductor.
Diversification Opportunities for Fujian Longzhou and Union Semiconductor
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Union is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Union Semiconductor go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Union Semiconductor
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to under-perform the Union Semiconductor. In addition to that, Fujian Longzhou is 2.81 times more volatile than Union Semiconductor Co. It trades about -0.04 of its total potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.04 per unit of volatility. If you would invest 934.00 in Union Semiconductor Co on September 28, 2024 and sell it today you would earn a total of 10.00 from holding Union Semiconductor Co or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Union Semiconductor Co
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Union Semiconductor |
Fujian Longzhou and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Union Semiconductor
The main advantage of trading using opposite Fujian Longzhou and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Chengdu Kanghua Biological | Fujian Longzhou vs. Beijing Wantai Biological | Fujian Longzhou vs. Suzhou Novoprotein Scientific | Fujian Longzhou vs. Aluminum Corp of |
| Union Semiconductor vs. Ningbo Bohui Chemical | Union Semiconductor vs. Dymatic Chemicals | Union Semiconductor vs. Shenyang Chemical Industry | Union Semiconductor vs. Liaoning Dingjide Petrochemical |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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