Correlation Between Union Semiconductor and Longxing Chemical
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By analyzing existing cross correlation between Union Semiconductor Co and Longxing Chemical Stock, you can compare the effects of market volatilities on Union Semiconductor and Longxing Chemical 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 Union Semiconductor with a short position of Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Longxing Chemical.
Diversification Opportunities for Union Semiconductor and Longxing Chemical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Union and Longxing is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock and Union 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 Union Semiconductor Co are associated (or correlated) with Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Longxing Chemical go up and down completely randomly.
Pair Corralation between Union Semiconductor and Longxing Chemical
Assuming the 90 days trading horizon Union Semiconductor Co is expected to under-perform the Longxing Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Union Semiconductor Co is 1.71 times less risky than Longxing Chemical. The stock trades about -0.12 of its potential returns per unit of risk. The Longxing Chemical Stock is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 565.00 in Longxing Chemical Stock on October 30, 2024 and sell it today you would lose (9.00) from holding Longxing Chemical Stock or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Longxing Chemical Stock
Performance |
| Timeline |
| Union Semiconductor |
| Longxing Chemical Stock |
Union Semiconductor and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Longxing Chemical
The main advantage of trading using opposite Union Semiconductor and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| 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 |
| Longxing Chemical vs. Suzhou Xingye Material | Longxing Chemical vs. Guangzhou Tinci Materials | Longxing Chemical vs. Ping An Insurance | Longxing Chemical vs. Highbroad Advanced Material |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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