Correlation Between Union Semiconductor and Liaoning Chengda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Union Semiconductor Co and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Union Semiconductor and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Semiconductor and Liaoning Chengda.
Diversification Opportunities for Union Semiconductor and Liaoning Chengda
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Union and Liaoning is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Union Semiconductor Co and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Union Semiconductor i.e., Union Semiconductor and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Union Semiconductor and Liaoning Chengda
Assuming the 90 days trading horizon Union Semiconductor Co is expected to generate 1.84 times more return on investment than Liaoning Chengda. However, Union Semiconductor is 1.84 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.01 per unit of risk. If you would invest 1,064 in Union Semiconductor Co on September 28, 2024 and sell it today you would lose (120.00) from holding Union Semiconductor Co or give up 11.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Union Semiconductor Co vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Union Semiconductor |
| Liaoning Chengda Bio |
Union Semiconductor and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Semiconductor and Liaoning Chengda
The main advantage of trading using opposite Union Semiconductor and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Semiconductor position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Union Semiconductor vs. Ningbo Bohui Chemical | Union Semiconductor vs. Dymatic Chemicals | Union Semiconductor vs. Shenyang Chemical Industry | Union Semiconductor vs. Liaoning Dingjide Petrochemical |
| Liaoning Chengda vs. Industrial and Commercial | Liaoning Chengda vs. Agricultural Bank of | Liaoning Chengda vs. China Construction Bank | Liaoning Chengda vs. Bank of China |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |