Correlation Between Jiujiang Shanshui and Union Semiconductor
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Union Semiconductor Co, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Union Semiconductor.
Diversification Opportunities for Jiujiang Shanshui and Union Semiconductor
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Union is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Union Semiconductor go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Union Semiconductor
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Union Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jiujiang Shanshui Technology is 1.23 times less risky than Union Semiconductor. The stock trades about 0.0 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 1,026 in Union Semiconductor Co on September 12, 2024 and sell it today you would lose (79.00) from holding Union Semiconductor Co or give up 7.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Union Semiconductor Co
Performance |
| Timeline |
| Jiujiang Shanshui |
| Union Semiconductor |
Jiujiang Shanshui and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Union Semiconductor
The main advantage of trading using opposite Jiujiang Shanshui and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
| Union Semiconductor vs. Gansu Jiu Steel | Union Semiconductor vs. Shandong Mining Machinery | Union Semiconductor vs. Aba Chemicals Corp | Union Semiconductor vs. BlueFocus Communication Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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