Correlation Between UNISEM and LabGenomics
Can any of the company-specific risk be diversified away by investing in both UNISEM and LabGenomics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining UNISEM and LabGenomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and LabGenomics Co, you can compare the effects of market volatilities on UNISEM and LabGenomics 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 UNISEM with a short position of LabGenomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and LabGenomics.
Diversification Opportunities for UNISEM and LabGenomics
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNISEM and LabGenomics is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and LabGenomics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LabGenomics and UNISEM 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 UNISEM Co are associated (or correlated) with LabGenomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LabGenomics has no effect on the direction of UNISEM i.e., UNISEM and LabGenomics go up and down completely randomly.
Pair Corralation between UNISEM and LabGenomics
Assuming the 90 days trading horizon UNISEM Co is expected to generate 0.82 times more return on investment than LabGenomics. However, UNISEM Co is 1.21 times less risky than LabGenomics. It trades about 0.02 of its potential returns per unit of risk. LabGenomics Co is currently generating about 0.01 per unit of risk. If you would invest 616,491 in UNISEM Co on August 31, 2024 and sell it today you would lose (10,491) from holding UNISEM Co or give up 1.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNISEM Co vs. LabGenomics Co
Performance |
| Timeline |
| UNISEM |
| LabGenomics |
UNISEM and LabGenomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and LabGenomics
The main advantage of trading using opposite UNISEM and LabGenomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM position performs unexpectedly, LabGenomics 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 LabGenomics will offset losses from the drop in LabGenomics' long position.| UNISEM vs. Namhae Chemical | UNISEM vs. LG Chemicals | UNISEM vs. iNtRON Biotechnology | UNISEM vs. Home Center Holdings |
| LabGenomics vs. DreamCIS | LabGenomics vs. KB Financial Group | LabGenomics vs. Busan Industrial Co | LabGenomics vs. Busan Ind |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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