Correlation Between China Petroleum and Union Semiconductor
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By analyzing existing cross correlation between China Petroleum Chemical and Union Semiconductor Co, you can compare the effects of market volatilities on China Petroleum 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 China Petroleum with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Petroleum and Union Semiconductor.
Diversification Opportunities for China Petroleum and Union Semiconductor
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Union is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Petroleum Chemical and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and China Petroleum 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 China Petroleum Chemical 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 China Petroleum i.e., China Petroleum and Union Semiconductor go up and down completely randomly.
Pair Corralation between China Petroleum and Union Semiconductor
Assuming the 90 days trading horizon China Petroleum Chemical is expected to generate 0.54 times more return on investment than Union Semiconductor. However, China Petroleum Chemical is 1.84 times less risky than Union Semiconductor. It trades about 0.05 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.0 per unit of risk. If you would invest 448.00 in China Petroleum Chemical on August 26, 2024 and sell it today you would earn a total of 179.00 from holding China Petroleum Chemical or generate 39.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Petroleum Chemical vs. Union Semiconductor Co
Performance |
| Timeline |
| China Petroleum Chemical |
| Union Semiconductor |
China Petroleum and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Petroleum and Union Semiconductor
The main advantage of trading using opposite China Petroleum and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Petroleum 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.| China Petroleum vs. DO Home Collection | China Petroleum vs. Shandong Polymer Biochemicals | China Petroleum vs. Nanxing Furniture Machinery | China Petroleum vs. Arrow Home Group |
| Union Semiconductor vs. Shandong Mining Machinery | Union Semiconductor vs. Harbin Hatou Investment | Union Semiconductor vs. Shenzhen Centralcon Investment | Union Semiconductor vs. Yunnan Xiyi Industrial |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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