Correlation Between Union Semiconductor and Citic Guoan
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By analyzing existing cross correlation between Union Semiconductor Co and Citic Guoan Wine, you can compare the effects of market volatilities on Union Semiconductor and Citic Guoan 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 Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Citic Guoan.
Diversification Opportunities for Union Semiconductor and Citic Guoan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Union and Citic is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine 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 Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Citic Guoan go up and down completely randomly.
Pair Corralation between Union Semiconductor and Citic Guoan
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 1.0 times more return on investment than Citic Guoan. However, Union Semiconductor is 1.0 times more volatile than Citic Guoan Wine. It trades about 0.01 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.01 per unit of risk. If you would invest 1,026 in Union Semiconductor Co on September 12, 2024 and sell it today you would lose (79.00) from holding Union Semiconductor Co or give up 7.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Citic Guoan Wine
Performance |
| Timeline |
| Union Semiconductor |
| Citic Guoan Wine |
Union Semiconductor and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Citic Guoan
The main advantage of trading using opposite Union Semiconductor and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| Union Semiconductor vs. Gansu Jiu Steel | Union Semiconductor vs. Shandong Mining Machinery | Union Semiconductor vs. Aba Chemicals Corp | Union Semiconductor vs. BlueFocus Communication Group |
| Citic Guoan vs. China Petroleum Chemical | Citic Guoan vs. PetroChina Co Ltd | Citic Guoan vs. China State Construction | Citic Guoan vs. China Railway Group |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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