Correlation Between Sinomach General and Union Semiconductor
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By analyzing existing cross correlation between Sinomach General Machinery and Union Semiconductor Co, you can compare the effects of market volatilities on Sinomach General 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 Sinomach General with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Union Semiconductor.
Diversification Opportunities for Sinomach General and Union Semiconductor
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Union is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Sinomach General 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 Sinomach General Machinery 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 Sinomach General i.e., Sinomach General and Union Semiconductor go up and down completely randomly.
Pair Corralation between Sinomach General and Union Semiconductor
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 1.09 times more return on investment than Union Semiconductor. However, Sinomach General is 1.09 times more volatile than Union Semiconductor Co. It trades about -0.1 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.12 per unit of risk. If you would invest 1,659 in Sinomach General Machinery on October 30, 2024 and sell it today you would lose (148.00) from holding Sinomach General Machinery or give up 8.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Union Semiconductor Co
Performance |
| Timeline |
| Sinomach General Mac |
| Union Semiconductor |
Sinomach General and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Union Semiconductor
The main advantage of trading using opposite Sinomach General and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General 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.| Sinomach General vs. Fuzhou Rockchip Electronics | Sinomach General vs. Dongnan Electronics Co | Sinomach General vs. Montage Technology Co | Sinomach General vs. YiDong Electronics Technology |
| Union Semiconductor vs. Jiangxi Hengda Hi Tech | Union Semiconductor vs. Citic Offshore Helicopter | Union Semiconductor vs. Suzhou Douson Drilling | Union Semiconductor vs. Tianjin Hi Tech Development |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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