Correlation Between China International and Union Semiconductor
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By analyzing existing cross correlation between China International Capital and Union Semiconductor Co, you can compare the effects of market volatilities on China International 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 China International with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Union Semiconductor.
Diversification Opportunities for China International and Union Semiconductor
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Union is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and China International 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 China International Capital 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 China International i.e., China International and Union Semiconductor go up and down completely randomly.
Pair Corralation between China International and Union Semiconductor
Assuming the 90 days trading horizon China International Capital is expected to under-perform the Union Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, China International Capital is 1.29 times less risky than Union Semiconductor. The stock trades about 0.0 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 1,062 in Union Semiconductor Co on August 30, 2024 and sell it today you would lose (128.00) from holding Union Semiconductor Co or give up 12.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Union Semiconductor Co
Performance |
| Timeline |
| China International |
| Union Semiconductor |
China International and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Union Semiconductor
The main advantage of trading using opposite China International and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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.| China International vs. Youyou Foods Co | China International vs. Sinomach General Machinery | China International vs. Shanghai Ziyan Foods | China International vs. Sichuan Teway Food |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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