Correlation Between Guangzhou Haozhi and Union Semiconductor
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Union Semiconductor Co, you can compare the effects of market volatilities on Guangzhou Haozhi 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 Guangzhou Haozhi with a short position of Union Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Union Semiconductor.
Diversification Opportunities for Guangzhou Haozhi and Union Semiconductor
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Union is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Union Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Semiconductor and Guangzhou Haozhi 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 Guangzhou Haozhi Industrial 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 Guangzhou Haozhi i.e., Guangzhou Haozhi and Union Semiconductor go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Union Semiconductor
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.88 times more return on investment than Union Semiconductor. However, Guangzhou Haozhi is 1.88 times more volatile than Union Semiconductor Co. It trades about 0.12 of its potential returns per unit of risk. Union Semiconductor Co is currently generating about 0.05 per unit of risk. If you would invest 2,073 in Guangzhou Haozhi Industrial on December 25, 2024 and sell it today you would earn a total of 572.00 from holding Guangzhou Haozhi Industrial or generate 27.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Union Semiconductor Co
Performance |
Timeline |
Guangzhou Haozhi Ind |
Union Semiconductor |
Guangzhou Haozhi and Union Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Haozhi and Union Semiconductor
The main advantage of trading using opposite Guangzhou Haozhi and Union Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi 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.Guangzhou Haozhi vs. Sportsoul Co Ltd | Guangzhou Haozhi vs. Ciwen Media Co | Guangzhou Haozhi vs. Guangzhou Jointas Chemical | Guangzhou Haozhi vs. GUOMAI Culture Media |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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