Correlation Between Union Semiconductor and Wuhan Hvsen
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By analyzing existing cross correlation between Union Semiconductor Co and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Union Semiconductor and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Wuhan Hvsen.
Diversification Opportunities for Union Semiconductor and Wuhan Hvsen
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Wuhan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Union Semiconductor and Wuhan Hvsen
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 0.62 times more return on investment than Wuhan Hvsen. However, Union Semiconductor Co is 1.61 times less risky than Wuhan Hvsen. It trades about 0.04 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.18 per unit of risk. If you would invest 934.00 in Union Semiconductor Co on September 28, 2024 and sell it today you would earn a total of 10.00 from holding Union Semiconductor Co or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Union Semiconductor |
| Wuhan Hvsen Biotechnology |
Union Semiconductor and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Wuhan Hvsen
The main advantage of trading using opposite Union Semiconductor and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Union Semiconductor vs. Ningbo Bohui Chemical | Union Semiconductor vs. Dymatic Chemicals | Union Semiconductor vs. Shenyang Chemical Industry | Union Semiconductor vs. Liaoning Dingjide Petrochemical |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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