Correlation Between Union Semiconductor and Agricultural Bank
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By analyzing existing cross correlation between Union Semiconductor Co and Agricultural Bank of, you can compare the effects of market volatilities on Union Semiconductor and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Agricultural Bank.
Diversification Opportunities for Union Semiconductor and Agricultural Bank
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Union and Agricultural is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Agricultural Bank go up and down completely randomly.
Pair Corralation between Union Semiconductor and Agricultural Bank
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 2.75 times more return on investment than Agricultural Bank. However, Union Semiconductor is 2.75 times more volatile than Agricultural Bank of. It trades about 0.12 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.05 per unit of risk. If you would invest 891.00 in Union Semiconductor Co on September 4, 2024 and sell it today you would earn a total of 53.00 from holding Union Semiconductor Co or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Agricultural Bank of
Performance |
| Timeline |
| Union Semiconductor |
| Agricultural Bank |
Union Semiconductor and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Agricultural Bank
The main advantage of trading using opposite Union Semiconductor and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Union Semiconductor vs. Cultural Investment Holdings | Union Semiconductor vs. Gome Telecom Equipment | Union Semiconductor vs. Bus Online Co | Union Semiconductor vs. Holitech Technology Co |
| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
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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