Correlation Between Xiamen Jihong and Union Semiconductor
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By analyzing existing cross correlation between Xiamen Jihong Package and Union Semiconductor Co, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Union Semiconductor.
Diversification Opportunities for Xiamen Jihong and Union Semiconductor
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Union is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Union Semiconductor go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Union Semiconductor
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 0.99 times more return on investment than Union Semiconductor. However, Xiamen Jihong Package is 1.01 times less risky than Union Semiconductor. It trades about 0.07 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.05 per unit of risk. If you would invest 1,024 in Xiamen Jihong Package on November 3, 2024 and sell it today you would earn a total of 262.00 from holding Xiamen Jihong Package or generate 25.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Union Semiconductor Co
Performance |
| Timeline |
| Xiamen Jihong Package |
| Union Semiconductor |
Xiamen Jihong and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Union Semiconductor
The main advantage of trading using opposite Xiamen Jihong and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Yankershop Food Co | Xiamen Jihong vs. Suzhou Weizhixiang Food | Xiamen Jihong vs. Zhejiang Huatong Meat | Xiamen Jihong vs. JuneYao Dairy Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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