Correlation Between Jiangsu Yueda and Union Semiconductor
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Union Semiconductor Co, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Union Semiconductor.
Diversification Opportunities for Jiangsu Yueda and Union Semiconductor
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Union is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Union Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Union Semiconductor
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.78 times more return on investment than Union Semiconductor. However, Jiangsu Yueda Investment is 1.29 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 -0.15 per unit of risk. If you would invest 447.00 in Jiangsu Yueda Investment on October 24, 2024 and sell it today you would lose (5.00) from holding Jiangsu Yueda Investment or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Union Semiconductor Co
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Union Semiconductor |
Jiangsu Yueda and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Union Semiconductor
The main advantage of trading using opposite Jiangsu Yueda and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Sinofibers Technology Co | Jiangsu Yueda vs. Ye Chiu Metal | Jiangsu Yueda vs. Changchun UP Optotech | Jiangsu Yueda vs. Guangdong Jingyi Metal |
| Union Semiconductor vs. Jiugui Liquor Co | Union Semiconductor vs. Zhongrun Resources Investment | Union Semiconductor vs. Shenzhen Glory Medical | Union Semiconductor vs. Jiangsu Yueda Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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