Correlation Between A Tech and UNISEM
Can any of the company-specific risk be diversified away by investing in both A Tech and UNISEM 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 A Tech and UNISEM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Tech Solution Co and UNISEM Co, you can compare the effects of market volatilities on A Tech and UNISEM 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 A Tech with a short position of UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Tech and UNISEM.
Diversification Opportunities for A Tech and UNISEM
Almost no diversification
The 3 months correlation between 071670 and UNISEM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding A Tech Solution Co and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM and A Tech 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 A Tech Solution Co are associated (or correlated) with UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of A Tech i.e., A Tech and UNISEM go up and down completely randomly.
Pair Corralation between A Tech and UNISEM
Assuming the 90 days trading horizon A Tech Solution Co is expected to generate 0.99 times more return on investment than UNISEM. However, A Tech Solution Co is 1.01 times less risky than UNISEM. It trades about -0.04 of its potential returns per unit of risk. UNISEM Co is currently generating about -0.04 per unit of risk. If you would invest 682,000 in A Tech Solution Co on October 14, 2024 and sell it today you would lose (69,000) from holding A Tech Solution Co or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
A Tech Solution Co vs. UNISEM Co
Performance |
| Timeline |
| A Tech Solution |
| UNISEM |
A Tech and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A Tech and UNISEM
The main advantage of trading using opposite A Tech and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Tech position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| A Tech vs. LB Investment | A Tech vs. EBEST Investment Securities | A Tech vs. Woori Technology Investment | A Tech vs. KTB Investment Securities |
| UNISEM vs. Pureun Mutual Savings | UNISEM vs. Hyundai Industrial Co | UNISEM vs. LEENO Industrial | UNISEM vs. Daejung Chemicals Metals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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