Correlation Between Union Semiconductor and Kingclean Electric
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By analyzing existing cross correlation between Union Semiconductor Co and Kingclean Electric Co, you can compare the effects of market volatilities on Union Semiconductor and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Kingclean Electric.
Diversification Opportunities for Union Semiconductor and Kingclean Electric
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Union and Kingclean is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Kingclean Electric go up and down completely randomly.
Pair Corralation between Union Semiconductor and Kingclean Electric
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 1.4 times more return on investment than Kingclean Electric. However, Union Semiconductor is 1.4 times more volatile than Kingclean Electric Co. It trades about 0.0 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.01 per unit of risk. If you would invest 1,092 in Union Semiconductor Co on August 26, 2024 and sell it today you would lose (172.00) from holding Union Semiconductor Co or give up 15.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Semiconductor Co vs. Kingclean Electric Co
Performance |
| Timeline |
| Union Semiconductor |
| Kingclean Electric |
Union Semiconductor and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Kingclean Electric
The main advantage of trading using opposite Union Semiconductor and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Union Semiconductor vs. Lutian Machinery Co | Union Semiconductor vs. China Longyuan Power | Union Semiconductor vs. Changshu Tongrun Auto | Union Semiconductor vs. PetroChina Co Ltd |
| Kingclean Electric vs. Bomesc Offshore Engineering | Kingclean Electric vs. China World Trade | Kingclean Electric vs. Eastroc Beverage Group | Kingclean Electric vs. Ping An Insurance |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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