Correlation Between Guangdong Liantai and Union Semiconductor
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By analyzing existing cross correlation between Guangdong Liantai Environmental and Union Semiconductor Co, you can compare the effects of market volatilities on Guangdong Liantai 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 Guangdong Liantai with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Liantai and Union Semiconductor.
Diversification Opportunities for Guangdong Liantai and Union Semiconductor
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Union is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Liantai Environmenta and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Guangdong Liantai 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 Guangdong Liantai Environmental 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 Guangdong Liantai i.e., Guangdong Liantai and Union Semiconductor go up and down completely randomly.
Pair Corralation between Guangdong Liantai and Union Semiconductor
Assuming the 90 days trading horizon Guangdong Liantai Environmental is expected to generate 0.88 times more return on investment than Union Semiconductor. However, Guangdong Liantai Environmental is 1.14 times less risky than Union Semiconductor. It trades about 0.02 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.06 per unit of risk. If you would invest 370.00 in Guangdong Liantai Environmental on October 14, 2024 and sell it today you would earn a total of 4.00 from holding Guangdong Liantai Environmental or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Liantai Environmenta vs. Union Semiconductor Co
Performance |
| Timeline |
| Guangdong Liantai |
| Union Semiconductor |
Guangdong Liantai and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Liantai and Union Semiconductor
The main advantage of trading using opposite Guangdong Liantai and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Liantai 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.| Guangdong Liantai vs. Shenzhen MYS Environmental | Guangdong Liantai vs. AVIC Fund Management | Guangdong Liantai vs. Rongan Property Co | Guangdong Liantai vs. Haoxiangni Jujube 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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