Correlation Between UPC Technology and Tah Hsin
Can any of the company-specific risk be diversified away by investing in both UPC Technology and Tah Hsin 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 Tah Hsin 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 Tah Hsin Industrial, you can compare the effects of market volatilities on UPC Technology and Tah Hsin 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 Tah Hsin. Check out your portfolio center. Please also check ongoing floating volatility patterns of UPC Technology and Tah Hsin.
Diversification Opportunities for UPC Technology and Tah Hsin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UPC and Tah is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding UPC Technology Corp and Tah Hsin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tah Hsin Industrial 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 Tah Hsin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tah Hsin Industrial has no effect on the direction of UPC Technology i.e., UPC Technology and Tah Hsin go up and down completely randomly.
Pair Corralation between UPC Technology and Tah Hsin
Assuming the 90 days trading horizon UPC Technology Corp is expected to under-perform the Tah Hsin. In addition to that, UPC Technology is 4.23 times more volatile than Tah Hsin Industrial. It trades about -0.1 of its total potential returns per unit of risk. Tah Hsin Industrial is currently generating about -0.03 per unit of volatility. If you would invest 7,050 in Tah Hsin Industrial on September 1, 2024 and sell it today you would lose (20.00) from holding Tah Hsin Industrial or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
UPC Technology Corp vs. Tah Hsin Industrial
Performance |
| Timeline |
| UPC Technology Corp |
| Tah Hsin Industrial |
UPC Technology and Tah Hsin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UPC Technology and Tah Hsin
The main advantage of trading using opposite UPC Technology and Tah Hsin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UPC Technology position performs unexpectedly, Tah Hsin 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 Tah Hsin will offset losses from the drop in Tah Hsin's long position.| UPC Technology vs. Basso Industry Corp | UPC Technology vs. Chung Hsin Electric Machinery | UPC Technology vs. TYC Brother Industrial | UPC Technology vs. TECO Electric Machinery |
| Tah Hsin vs. Taita Chemical Co | Tah Hsin vs. China General Plastics | Tah Hsin vs. UPC Technology Corp | Tah Hsin vs. Asia Polymer 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |