Correlation Between Union Semiconductor and Guangdong Qunxing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Union Semiconductor Co and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Union Semiconductor and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Guangdong Qunxing.
Diversification Opportunities for Union Semiconductor and Guangdong Qunxing
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Union and Guangdong is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Union Semiconductor and Guangdong Qunxing
Assuming the 90 days trading horizon Union Semiconductor Co is expected to under-perform the Guangdong Qunxing. But the stock apears to be less risky and, when comparing its historical volatility, Union Semiconductor Co is 1.73 times less risky than Guangdong Qunxing. The stock trades about -0.06 of its potential returns per unit of risk. The Guangdong Qunxing Toys is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 551.00 in Guangdong Qunxing Toys on October 14, 2024 and sell it today you would earn a total of 134.00 from holding Guangdong Qunxing Toys or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Union Semiconductor |
| Guangdong Qunxing Toys |
Union Semiconductor and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Guangdong Qunxing
The main advantage of trading using opposite Union Semiconductor and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.The idea behind Union Semiconductor Co and Guangdong Qunxing Toys pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Guangdong Qunxing vs. Giantec Semiconductor Corp | Guangdong Qunxing vs. Shanghai Phichem Material | Guangdong Qunxing vs. Union Semiconductor Co | Guangdong Qunxing vs. Konfoong Materials International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |