Correlation Between Hainan Mining and Union Semiconductor
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By analyzing existing cross correlation between Hainan Mining Co and Union Semiconductor Co, you can compare the effects of market volatilities on Hainan Mining 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 Hainan Mining with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Union Semiconductor.
Diversification Opportunities for Hainan Mining and Union Semiconductor
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Union is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Hainan Mining 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 Hainan Mining Co 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 Hainan Mining i.e., Hainan Mining and Union Semiconductor go up and down completely randomly.
Pair Corralation between Hainan Mining and Union Semiconductor
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 1.65 times more return on investment than Union Semiconductor. However, Hainan Mining is 1.65 times more volatile than Union Semiconductor Co. It trades about 0.08 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.17 per unit of risk. If you would invest 725.00 in Hainan Mining Co on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Hainan Mining Co or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Union Semiconductor Co
Performance |
| Timeline |
| Hainan Mining |
| Union Semiconductor |
Hainan Mining and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Union Semiconductor
The main advantage of trading using opposite Hainan Mining and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining 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.| Hainan Mining vs. Cowealth Medical China | Hainan Mining vs. CareRay Digital Medical | Hainan Mining vs. Jiangsu Yueda Investment | Hainan Mining vs. Hubei Geoway Investment |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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