Correlation Between Giantec Semiconductor and Union Semiconductor
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By analyzing existing cross correlation between Giantec Semiconductor Corp and Union Semiconductor Co, you can compare the effects of market volatilities on Giantec Semiconductor 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 Giantec Semiconductor with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giantec Semiconductor and Union Semiconductor.
Diversification Opportunities for Giantec Semiconductor and Union Semiconductor
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Giantec and Union is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Giantec Semiconductor Corp and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Giantec Semiconductor 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 Giantec Semiconductor Corp 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 Giantec Semiconductor i.e., Giantec Semiconductor and Union Semiconductor go up and down completely randomly.
Pair Corralation between Giantec Semiconductor and Union Semiconductor
Assuming the 90 days trading horizon Giantec Semiconductor Corp is expected to generate 2.52 times more return on investment than Union Semiconductor. However, Giantec Semiconductor is 2.52 times more volatile than Union Semiconductor Co. It trades about 0.23 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.03 per unit of risk. If you would invest 5,609 in Giantec Semiconductor Corp on November 3, 2024 and sell it today you would earn a total of 1,255 from holding Giantec Semiconductor Corp or generate 22.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Giantec Semiconductor Corp vs. Union Semiconductor Co
Performance |
| Timeline |
| Giantec Semiconductor |
| Union Semiconductor |
Giantec Semiconductor and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giantec Semiconductor and Union Semiconductor
The main advantage of trading using opposite Giantec Semiconductor and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giantec Semiconductor 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.| Giantec Semiconductor vs. Beijing Kingsoft Office | Giantec Semiconductor vs. Ningbo Jintian Copper | Giantec Semiconductor vs. Shenzhen Zqgame | Giantec Semiconductor vs. Zhejiang Yongjin Metal |
| Union Semiconductor vs. Kuang Chi Technologies | Union Semiconductor vs. Jinhe Biotechnology Co | Union Semiconductor vs. Semiconductor Manufacturing Intl | Union Semiconductor vs. HUAQIN TECHNOLOGY 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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