Correlation Between Lutian Machinery and Union Semiconductor
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By analyzing existing cross correlation between Lutian Machinery Co and Union Semiconductor Co, you can compare the effects of market volatilities on Lutian Machinery 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 Lutian Machinery with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Union Semiconductor.
Diversification Opportunities for Lutian Machinery and Union Semiconductor
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and Union is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery 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 Lutian Machinery i.e., Lutian Machinery and Union Semiconductor go up and down completely randomly.
Pair Corralation between Lutian Machinery and Union Semiconductor
Assuming the 90 days trading horizon Lutian Machinery is expected to generate 27.0 times less return on investment than Union Semiconductor. But when comparing it to its historical volatility, Lutian Machinery Co is 1.48 times less risky than Union Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,092 in Union Semiconductor Co on August 26, 2024 and sell it today you would lose (172.00) from holding Union Semiconductor Co or give up 15.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Union Semiconductor Co
Performance |
| Timeline |
| Lutian Machinery |
| Union Semiconductor |
Lutian Machinery and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Union Semiconductor
The main advantage of trading using opposite Lutian Machinery and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery 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.| Lutian Machinery vs. Biwin Storage Technology | Lutian Machinery vs. PetroChina Co Ltd | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. China Construction Bank |
| Union Semiconductor vs. Lutian Machinery Co | Union Semiconductor vs. China Longyuan Power | Union Semiconductor vs. Changshu Tongrun Auto | Union Semiconductor vs. PetroChina Co Ltd |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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