Correlation Between Uni President and Maywufa
Can any of the company-specific risk be diversified away by investing in both Uni President and Maywufa 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 Maywufa 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 Maywufa Co, you can compare the effects of market volatilities on Uni President and Maywufa 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 Maywufa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uni President and Maywufa.
Diversification Opportunities for Uni President and Maywufa
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uni and Maywufa is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Uni President Enterprises Corp and Maywufa Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maywufa 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 Maywufa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maywufa has no effect on the direction of Uni President i.e., Uni President and Maywufa go up and down completely randomly.
Pair Corralation between Uni President and Maywufa
Assuming the 90 days trading horizon Uni President Enterprises Corp is expected to generate 0.77 times more return on investment than Maywufa. However, Uni President Enterprises Corp is 1.31 times less risky than Maywufa. It trades about 0.05 of its potential returns per unit of risk. Maywufa Co is currently generating about 0.01 per unit of risk. If you would invest 7,110 in Uni President Enterprises Corp on August 30, 2024 and sell it today you would earn a total of 1,540 from holding Uni President Enterprises Corp or generate 21.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Uni President Enterprises Corp vs. Maywufa Co
Performance |
| Timeline |
| Uni President Enterp |
| Maywufa |
Uni President and Maywufa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uni President and Maywufa
The main advantage of trading using opposite Uni President and Maywufa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uni President position performs unexpectedly, Maywufa 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 Maywufa will offset losses from the drop in Maywufa's 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 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |