Correlation Between Gansu Jiu and Union Semiconductor
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By analyzing existing cross correlation between Gansu Jiu Steel and Union Semiconductor Co, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Union Semiconductor.
Diversification Opportunities for Gansu Jiu and Union Semiconductor
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Union is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Gansu Jiu 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 Gansu Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and Union Semiconductor go up and down completely randomly.
Pair Corralation between Gansu Jiu and Union Semiconductor
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.64 times more return on investment than Union Semiconductor. However, Gansu Jiu Steel is 1.55 times less risky than Union Semiconductor. It trades about 0.02 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 164.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Gansu Jiu Steel or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Union Semiconductor Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Union Semiconductor |
Gansu Jiu and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Union Semiconductor
The main advantage of trading using opposite Gansu Jiu and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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