Correlation Between Ye Chiu and Union Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ye Chiu Metal and Union Semiconductor Co, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Union Semiconductor.
Diversification Opportunities for Ye Chiu and Union Semiconductor
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 601388 and Union is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Union Semiconductor go up and down completely randomly.
Pair Corralation between Ye Chiu and Union Semiconductor
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.73 times more return on investment than Union Semiconductor. However, Ye Chiu Metal is 1.36 times less risky than Union Semiconductor. It trades about 0.1 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.03 per unit of risk. If you would invest 226.00 in Ye Chiu Metal on September 14, 2024 and sell it today you would earn a total of 73.00 from holding Ye Chiu Metal or generate 32.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Union Semiconductor Co
Performance |
| Timeline |
| Ye Chiu Metal |
| Union Semiconductor |
Ye Chiu and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Union Semiconductor
The main advantage of trading using opposite Ye Chiu and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
| Union Semiconductor vs. Chengdu Xinzhu RoadBridge | Union Semiconductor vs. Impulse Qingdao Health | Union Semiconductor vs. Youngy Health Co | Union Semiconductor vs. Shanghai Metersbonwe FashionAccessories |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |