Correlation Between Champion Microelectronic and Oriental Union
Can any of the company-specific risk be diversified away by investing in both Champion Microelectronic and Oriental Union at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Champion Microelectronic and Oriental Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Microelectronic Corp and Oriental Union Chemical, you can compare the effects of market volatilities on Champion Microelectronic and Oriental Union 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 Champion Microelectronic with a short position of Oriental Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Microelectronic and Oriental Union.
Diversification Opportunities for Champion Microelectronic and Oriental Union
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Champion and Oriental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Champion Microelectronic Corp and Oriental Union Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Union Chemical and Champion Microelectronic 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 Champion Microelectronic Corp are associated (or correlated) with Oriental Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Union Chemical has no effect on the direction of Champion Microelectronic i.e., Champion Microelectronic and Oriental Union go up and down completely randomly.
Pair Corralation between Champion Microelectronic and Oriental Union
If you would invest 1,440 in Oriental Union Chemical on October 22, 2024 and sell it today you would earn a total of 50.00 from holding Oriental Union Chemical or generate 3.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Champion Microelectronic Corp vs. Oriental Union Chemical
Performance |
Timeline |
Champion Microelectronic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oriental Union Chemical |
Champion Microelectronic and Oriental Union Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Champion Microelectronic and Oriental Union
The main advantage of trading using opposite Champion Microelectronic and Oriental Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Microelectronic position performs unexpectedly, Oriental Union 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 Oriental Union will offset losses from the drop in Oriental Union's long position.Champion Microelectronic vs. Nuvoton Technology Corp | Champion Microelectronic vs. Generalplus Technology | Champion Microelectronic vs. Holtek Semiconductor | Champion Microelectronic vs. Scientech Corp |
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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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