Correlation Between Jiangsu GDK and Union Semiconductor
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Union Semiconductor Co, you can compare the effects of market volatilities on Jiangsu GDK and Union Semiconductor 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 Jiangsu GDK with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Union Semiconductor.
Diversification Opportunities for Jiangsu GDK and Union Semiconductor
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Union is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Jiangsu GDK 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 Jiangsu GDK Biotechnology are associated (or correlated) with Union Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Semiconductor has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Union Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Union Semiconductor
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Union Semiconductor. In addition to that, Jiangsu GDK is 1.33 times more volatile than Union Semiconductor Co. It trades about -0.3 of its total potential returns per unit of risk. Union Semiconductor Co is currently generating about -0.11 per unit of volatility. 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 |
Jiangsu GDK Biotechnology vs. Union Semiconductor Co
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Union Semiconductor |
Jiangsu GDK and Union Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Union Semiconductor
The main advantage of trading using opposite Jiangsu GDK and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Union Semiconductor 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 Union Semiconductor will offset losses from the drop in Union Semiconductor's long position.| 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 |
| Union Semiconductor vs. Kuang Chi Technologies | Union Semiconductor vs. Jinhe Biotechnology Co | Union Semiconductor vs. Semiconductor Manufacturing Intl | Union Semiconductor vs. HUAQIN TECHNOLOGY LTD |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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