Correlation Between PetroChina and Union Semiconductor
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By analyzing existing cross correlation between PetroChina Co Ltd and Union Semiconductor Co, you can compare the effects of market volatilities on PetroChina 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 PetroChina with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of PetroChina and Union Semiconductor.
Diversification Opportunities for PetroChina and Union Semiconductor
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between PetroChina and Union is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding PetroChina Co Ltd and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and PetroChina 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 PetroChina Co Ltd 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 PetroChina i.e., PetroChina and Union Semiconductor go up and down completely randomly.
Pair Corralation between PetroChina and Union Semiconductor
Assuming the 90 days trading horizon PetroChina Co Ltd is expected to under-perform the Union Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, PetroChina Co Ltd is 2.89 times less risky than Union Semiconductor. The stock trades about -0.16 of its potential returns per unit of risk. The Union Semiconductor Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 938.00 in Union Semiconductor Co on August 29, 2024 and sell it today you would lose (4.00) from holding Union Semiconductor Co or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PetroChina Co Ltd vs. Union Semiconductor Co
Performance |
| Timeline |
| PetroChina |
| Union Semiconductor |
PetroChina and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PetroChina and Union Semiconductor
The main advantage of trading using opposite PetroChina and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PetroChina 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.| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
| Union Semiconductor vs. China State Construction | Union Semiconductor vs. Huafa Industrial Co | Union Semiconductor vs. China International Capital | Union Semiconductor vs. Kweichow Moutai Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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