Correlation Between Union Semiconductor and Inner Mongolia
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By analyzing existing cross correlation between Union Semiconductor Co and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Union Semiconductor and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Inner Mongolia.
Diversification Opportunities for Union Semiconductor and Inner Mongolia
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Inner is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Inner Mongolia go up and down completely randomly.
Pair Corralation between Union Semiconductor and Inner Mongolia
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 1.0 times more return on investment than Inner Mongolia. However, Union Semiconductor Co is 1.0 times less risky than Inner Mongolia. It trades about 0.31 of its potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about 0.16 per unit of risk. If you would invest 849.00 in Union Semiconductor Co on November 28, 2024 and sell it today you would earn a total of 66.00 from holding Union Semiconductor Co or generate 7.77% 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. Inner Mongolia BaoTou
Performance |
| Timeline |
| Union Semiconductor |
| Inner Mongolia BaoTou |
Union Semiconductor and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Inner Mongolia
The main advantage of trading using opposite Union Semiconductor and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Union Semiconductor vs. Caihong Display Devices | Union Semiconductor vs. Allwin Telecommunication Co | Union Semiconductor vs. Shaanxi Meineng Clean | Union Semiconductor vs. Sportsoul Co Ltd |
| Inner Mongolia vs. Guangzhou Ruoyuchen Information | Inner Mongolia vs. Dymatic Chemicals | Inner Mongolia vs. Sportsoul Co Ltd | Inner Mongolia vs. Jiangsu Jinling Sports |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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