Correlation Between Hengdian Entertainment and Union Semiconductor
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By analyzing existing cross correlation between Hengdian Entertainment Co and Union Semiconductor Co, you can compare the effects of market volatilities on Hengdian Entertainment 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 Hengdian Entertainment with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and Union Semiconductor.
Diversification Opportunities for Hengdian Entertainment and Union Semiconductor
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hengdian and Union is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment 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 Hengdian Entertainment 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 Hengdian Entertainment 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 Hengdian Entertainment i.e., Hengdian Entertainment and Union Semiconductor go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and Union Semiconductor
Assuming the 90 days trading horizon Hengdian Entertainment Co is expected to generate 1.63 times more return on investment than Union Semiconductor. However, Hengdian Entertainment is 1.63 times more volatile than Union Semiconductor Co. It trades about 0.01 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.12 per unit of risk. If you would invest 1,487 in Hengdian Entertainment Co on October 30, 2024 and sell it today you would lose (12.00) from holding Hengdian Entertainment Co or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. Union Semiconductor Co
Performance |
| Timeline |
| Hengdian Entertainment |
| Union Semiconductor |
Hengdian Entertainment and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and Union Semiconductor
The main advantage of trading using opposite Hengdian Entertainment and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment 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.| Hengdian Entertainment vs. GRG Banking Equipment | Hengdian Entertainment vs. Tongling Nonferrous Metals | Hengdian Entertainment vs. Industrial Bank Co | Hengdian Entertainment vs. Panda Financial Holding |
| Union Semiconductor vs. Jiangxi Hengda Hi Tech | Union Semiconductor vs. Citic Offshore Helicopter | Union Semiconductor vs. Suzhou Douson Drilling | Union Semiconductor vs. Tianjin Hi Tech Development |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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