Correlation Between Wuhan Hvsen and Union Semiconductor
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Union Semiconductor Co, you can compare the effects of market volatilities on Wuhan Hvsen 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 Wuhan Hvsen with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Union Semiconductor.
Diversification Opportunities for Wuhan Hvsen and Union Semiconductor
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Union is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Wuhan Hvsen 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 Wuhan Hvsen Biotechnology 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 Wuhan Hvsen i.e., Wuhan Hvsen and Union Semiconductor go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Union Semiconductor
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Union Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.07 times less risky than Union Semiconductor. The stock trades about -0.04 of its potential returns per unit of risk. The Union Semiconductor Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,064 in Union Semiconductor Co on September 28, 2024 and sell it today you would lose (120.00) from holding Union Semiconductor Co or give up 11.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Union Semiconductor Co
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Union Semiconductor |
Wuhan Hvsen and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Union Semiconductor
The main advantage of trading using opposite Wuhan Hvsen and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen 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.| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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