Correlation Between Tongyu Communication and Union Semiconductor
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By analyzing existing cross correlation between Tongyu Communication and Union Semiconductor Co, you can compare the effects of market volatilities on Tongyu Communication 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 Tongyu Communication with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Union Semiconductor.
Diversification Opportunities for Tongyu Communication and Union Semiconductor
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Union is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Tongyu Communication 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 Tongyu Communication 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 Tongyu Communication i.e., Tongyu Communication and Union Semiconductor go up and down completely randomly.
Pair Corralation between Tongyu Communication and Union Semiconductor
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.98 times more return on investment than Union Semiconductor. However, Tongyu Communication is 1.02 times less risky than Union Semiconductor. It trades about 0.21 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.15 per unit of risk. If you would invest 1,035 in Tongyu Communication on September 2, 2024 and sell it today you would earn a total of 618.00 from holding Tongyu Communication or generate 59.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Union Semiconductor Co
Performance |
| Timeline |
| Tongyu Communication |
| Union Semiconductor |
Tongyu Communication and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Union Semiconductor
The main advantage of trading using opposite Tongyu Communication and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication 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.| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. Kweichow Moutai Co | Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Mobile Limited |
| Union Semiconductor vs. Industrial and Commercial | Union Semiconductor vs. Kweichow Moutai Co | Union Semiconductor vs. Agricultural Bank of | Union Semiconductor vs. China Mobile Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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