Correlation Between Uni President and AGV Products
Can any of the company-specific risk be diversified away by investing in both Uni President and AGV Products 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 Uni President and AGV Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uni President Enterprises Corp and AGV Products Corp, you can compare the effects of market volatilities on Uni President and AGV Products 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 Uni President with a short position of AGV Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uni President and AGV Products.
Diversification Opportunities for Uni President and AGV Products
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Uni and AGV is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Uni President Enterprises Corp and AGV Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGV Products Corp and Uni President 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 Uni President Enterprises Corp are associated (or correlated) with AGV Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGV Products Corp has no effect on the direction of Uni President i.e., Uni President and AGV Products go up and down completely randomly.
Pair Corralation between Uni President and AGV Products
Assuming the 90 days trading horizon Uni President Enterprises Corp is expected to under-perform the AGV Products. In addition to that, Uni President is 1.28 times more volatile than AGV Products Corp. It trades about -0.25 of its total potential returns per unit of risk. AGV Products Corp is currently generating about 0.06 per unit of volatility. If you would invest 1,190 in AGV Products Corp on August 25, 2024 and sell it today you would earn a total of 10.00 from holding AGV Products Corp or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Uni President Enterprises Corp vs. AGV Products Corp
Performance |
| Timeline |
| Uni President Enterp |
| AGV Products Corp |
Uni President and AGV Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uni President and AGV Products
The main advantage of trading using opposite Uni President and AGV Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uni President position performs unexpectedly, AGV Products 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 AGV Products will offset losses from the drop in AGV Products' long position.| Uni President vs. President Chain Store | Uni President vs. Formosa Plastics Corp | Uni President vs. Nan Ya Plastics | Uni President vs. Taiwan Cement Corp |
| AGV Products vs. Lian Hwa Foods | AGV Products vs. Uni President Enterprises Corp | AGV Products vs. Taiwan Cement Corp | AGV Products vs. Ruentex Development Co |
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.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |