Correlation Between Union Semiconductor and Chongqing Brewery
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By analyzing existing cross correlation between Union Semiconductor Co and Chongqing Brewery Co, you can compare the effects of market volatilities on Union Semiconductor and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Chongqing Brewery.
Diversification Opportunities for Union Semiconductor and Chongqing Brewery
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Chongqing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Union Semiconductor and Chongqing Brewery
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 1.11 times more return on investment than Chongqing Brewery. However, Union Semiconductor is 1.11 times more volatile than Chongqing Brewery Co. It trades about -0.12 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.15 per unit of risk. If you would invest 942.00 in Union Semiconductor Co on October 30, 2024 and sell it today you would lose (93.00) from holding Union Semiconductor Co or give up 9.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Chongqing Brewery Co
Performance |
| Timeline |
| Union Semiconductor |
| Chongqing Brewery |
Union Semiconductor and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Chongqing Brewery
The main advantage of trading using opposite Union Semiconductor and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Union Semiconductor vs. Jiangxi Hengda Hi Tech | Union Semiconductor vs. Citic Offshore Helicopter | Union Semiconductor vs. Suzhou Douson Drilling | Union Semiconductor vs. Tianjin Hi Tech Development |
| Chongqing Brewery vs. Agricultural Bank of | Chongqing Brewery vs. Industrial and Commercial | Chongqing Brewery vs. Bank of China | Chongqing Brewery vs. China Construction Bank |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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