Correlation Between UPC Technology and San Fang
Can any of the company-specific risk be diversified away by investing in both UPC Technology and San Fang 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 UPC Technology and San Fang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UPC Technology Corp and San Fang Chemical, you can compare the effects of market volatilities on UPC Technology and San Fang 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 UPC Technology with a short position of San Fang. Check out your portfolio center. Please also check ongoing floating volatility patterns of UPC Technology and San Fang.
Diversification Opportunities for UPC Technology and San Fang
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UPC and San is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding UPC Technology Corp and San Fang Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Fang Chemical and UPC Technology 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 UPC Technology Corp are associated (or correlated) with San Fang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Fang Chemical has no effect on the direction of UPC Technology i.e., UPC Technology and San Fang go up and down completely randomly.
Pair Corralation between UPC Technology and San Fang
Assuming the 90 days trading horizon UPC Technology Corp is expected to under-perform the San Fang. But the stock apears to be less risky and, when comparing its historical volatility, UPC Technology Corp is 2.03 times less risky than San Fang. The stock trades about -0.09 of its potential returns per unit of risk. The San Fang Chemical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,230 in San Fang Chemical on August 29, 2024 and sell it today you would earn a total of 0.00 from holding San Fang Chemical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UPC Technology Corp vs. San Fang Chemical
Performance |
| Timeline |
| UPC Technology Corp |
| San Fang Chemical |
UPC Technology and San Fang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UPC Technology and San Fang
The main advantage of trading using opposite UPC Technology and San Fang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UPC Technology position performs unexpectedly, San Fang 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 San Fang will offset losses from the drop in San Fang's long position.| UPC Technology vs. USI Corp | UPC Technology vs. Taiwan Styrene Monomer | UPC Technology vs. Asia Polymer Corp | UPC Technology vs. Grand Pacific Petrochemical |
| San Fang vs. China Man Made Fiber | San Fang vs. USI Corp | San Fang vs. China Petrochemical Development | San Fang vs. Yulon Motor 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |