Correlation Between UNISEM and Settlebank
Can any of the company-specific risk be diversified away by investing in both UNISEM and Settlebank 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 Settlebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and Settlebank, you can compare the effects of market volatilities on UNISEM and Settlebank 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 Settlebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and Settlebank.
Diversification Opportunities for UNISEM and Settlebank
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNISEM and Settlebank is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and Settlebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Settlebank 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 Settlebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Settlebank has no effect on the direction of UNISEM i.e., UNISEM and Settlebank go up and down completely randomly.
Pair Corralation between UNISEM and Settlebank
Assuming the 90 days trading horizon UNISEM Co is expected to under-perform the Settlebank. In addition to that, UNISEM is 1.09 times more volatile than Settlebank. It trades about -0.19 of its total potential returns per unit of risk. Settlebank is currently generating about -0.06 per unit of volatility. If you would invest 1,605,000 in Settlebank on August 25, 2024 and sell it today you would lose (71,000) from holding Settlebank or give up 4.42% 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. Settlebank
Performance |
| Timeline |
| UNISEM |
| Settlebank |
UNISEM and Settlebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and Settlebank
The main advantage of trading using opposite UNISEM and Settlebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM position performs unexpectedly, Settlebank 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 Settlebank will offset losses from the drop in Settlebank's long position.| UNISEM vs. SKONEC Entertainment Co | UNISEM vs. Polaris Office Corp | UNISEM vs. ChipsMedia | UNISEM vs. MEDIANA CoLtd |
| Settlebank vs. Playgram Co | Settlebank vs. MediaZen | Settlebank vs. DC Media Co | Settlebank vs. Woori Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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