Correlation Between Union Semiconductor and Nanjing Putian
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By analyzing existing cross correlation between Union Semiconductor Co and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Union Semiconductor and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Nanjing Putian.
Diversification Opportunities for Union Semiconductor and Nanjing Putian
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Union and Nanjing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Nanjing Putian go up and down completely randomly.
Pair Corralation between Union Semiconductor and Nanjing Putian
Assuming the 90 days trading horizon Union Semiconductor is expected to generate 2.41 times less return on investment than Nanjing Putian. In addition to that, Union Semiconductor is 1.03 times more volatile than Nanjing Putian Telecommunications. It trades about 0.15 of its total potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about 0.38 per unit of volatility. If you would invest 194.00 in Nanjing Putian Telecommunications on September 2, 2024 and sell it today you would earn a total of 266.00 from holding Nanjing Putian Telecommunications or generate 137.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Union Semiconductor |
| Nanjing Putian Telec |
Union Semiconductor and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Nanjing Putian
The main advantage of trading using opposite Union Semiconductor and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Union Semiconductor vs. Industrial and Commercial | Union Semiconductor vs. Kweichow Moutai Co | Union Semiconductor vs. Agricultural Bank of | Union Semiconductor vs. China Mobile Limited |
| Nanjing Putian vs. Puyang Huicheng Electronic | Nanjing Putian vs. Jiangyin Jianghua Microelectronics | Nanjing Putian vs. Qumei Furniture Group | Nanjing Putian vs. Fiberhome Telecommunication Technologies |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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