Correlation Between Nanjing Putian and Union Semiconductor
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Union Semiconductor Co, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Union Semiconductor.
Diversification Opportunities for Nanjing Putian and Union Semiconductor
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Union is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Union Semiconductor go up and down completely randomly.
Pair Corralation between Nanjing Putian and Union Semiconductor
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.39 times more return on investment than Union Semiconductor. However, Nanjing Putian is 1.39 times more volatile than Union Semiconductor Co. It trades about 0.18 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.08 per unit of risk. If you would invest 387.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 61.00 from holding Nanjing Putian Telecommunications or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Union Semiconductor Co
Performance |
| Timeline |
| Nanjing Putian Telec |
| Union Semiconductor |
Nanjing Putian and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Union Semiconductor
The main advantage of trading using opposite Nanjing Putian and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
| Union Semiconductor vs. Kweichow Moutai Co | Union Semiconductor vs. NAURA Technology Group | Union Semiconductor vs. APT Medical | Union Semiconductor vs. Contemporary Amperex Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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