Correlation Between Union Semiconductor and Kunwu Jiuding
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By analyzing existing cross correlation between Union Semiconductor Co and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Union Semiconductor and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Kunwu Jiuding.
Diversification Opportunities for Union Semiconductor and Kunwu Jiuding
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Union and Kunwu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Union Semiconductor and Kunwu Jiuding
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 0.85 times more return on investment than Kunwu Jiuding. However, Union Semiconductor Co is 1.18 times less risky than Kunwu Jiuding. It trades about 0.12 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.07 per unit of risk. If you would invest 891.00 in Union Semiconductor Co on September 3, 2024 and sell it today you would earn a total of 51.00 from holding Union Semiconductor Co or generate 5.72% 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. Kunwu Jiuding Investment
Performance |
| Timeline |
| Union Semiconductor |
| Kunwu Jiuding Investment |
Union Semiconductor and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Kunwu Jiuding
The main advantage of trading using opposite Union Semiconductor and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Union Semiconductor vs. Agricultural Bank of | Union Semiconductor vs. China Construction Bank | Union Semiconductor vs. Postal Savings Bank | Union Semiconductor vs. Bank of Communications |
| Kunwu Jiuding vs. Zhejiang Kingland Pipeline | Kunwu Jiuding vs. Semiconductor Manufacturing Electronics | Kunwu Jiuding vs. StarPower Semiconductor | Kunwu Jiuding vs. Union Semiconductor Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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