Correlation Between Union Semiconductor and Jiangsu GDK
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By analyzing existing cross correlation between Union Semiconductor Co and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Union Semiconductor and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Jiangsu GDK.
Diversification Opportunities for Union Semiconductor and Jiangsu GDK
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Union and Jiangsu is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Union Semiconductor and Jiangsu GDK
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 0.75 times more return on investment than Jiangsu GDK. However, Union Semiconductor Co is 1.33 times less risky than Jiangsu GDK. It trades about -0.11 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.3 per unit of risk. If you would invest 932.00 in Union Semiconductor Co on November 3, 2024 and sell it today you would lose (83.00) from holding Union Semiconductor Co or give up 8.91% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Union Semiconductor |
| Jiangsu GDK Biotechnology |
Union Semiconductor and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Jiangsu GDK
The main advantage of trading using opposite Union Semiconductor and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Union Semiconductor vs. Kuang Chi Technologies | Union Semiconductor vs. Jinhe Biotechnology Co | Union Semiconductor vs. Semiconductor Manufacturing Intl | Union Semiconductor vs. HUAQIN TECHNOLOGY LTD |
| Jiangsu GDK vs. Kweichow Moutai Co | Jiangsu GDK vs. G bits Network Technology | Jiangsu GDK vs. Anhui Gujing Distillery | Jiangsu GDK vs. Anhui Gujing Distillery |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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