Correlation Between Union Semiconductor and Dalian Thermal
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By analyzing existing cross correlation between Union Semiconductor Co and Dalian Thermal Power, you can compare the effects of market volatilities on Union Semiconductor and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Dalian Thermal.
Diversification Opportunities for Union Semiconductor and Dalian Thermal
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Dalian is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Dalian Thermal go up and down completely randomly.
Pair Corralation between Union Semiconductor and Dalian Thermal
Assuming the 90 days trading horizon Union Semiconductor Co is expected to under-perform the Dalian Thermal. But the stock apears to be less risky and, when comparing its historical volatility, Union Semiconductor Co is 1.29 times less risky than Dalian Thermal. The stock trades about -0.19 of its potential returns per unit of risk. The Dalian Thermal Power is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 721.00 in Dalian Thermal Power on October 22, 2024 and sell it today you would lose (65.00) from holding Dalian Thermal Power or give up 9.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Union Semiconductor Co vs. Dalian Thermal Power
Performance |
| Timeline |
| Union Semiconductor |
| Dalian Thermal Power |
Union Semiconductor and Dalian Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Dalian Thermal
The main advantage of trading using opposite Union Semiconductor and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.| Union Semiconductor vs. Lootom Telcovideo Network | Union Semiconductor vs. Changchun BCHT Biotechnology | Union Semiconductor vs. Xiamen Jihong Package | Union Semiconductor vs. Guangdong Wens Foodstuff |
| Dalian Thermal vs. Sino Platinum Metals Co | Dalian Thermal vs. Zhejiang Yongjin Metal | Dalian Thermal vs. Western Metal Materials | Dalian Thermal vs. Rising Nonferrous Metals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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