Correlation Between Li Peng and UPC Technology
Can any of the company-specific risk be diversified away by investing in both Li Peng and UPC Technology 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 Li Peng and UPC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Li Peng Enterprise and UPC Technology Corp, you can compare the effects of market volatilities on Li Peng and UPC Technology 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 Li Peng with a short position of UPC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Li Peng and UPC Technology.
Diversification Opportunities for Li Peng and UPC Technology
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 1447 and UPC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Li Peng Enterprise and UPC Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPC Technology Corp and Li Peng 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 Li Peng Enterprise are associated (or correlated) with UPC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPC Technology Corp has no effect on the direction of Li Peng i.e., Li Peng and UPC Technology go up and down completely randomly.
Pair Corralation between Li Peng and UPC Technology
Assuming the 90 days trading horizon Li Peng Enterprise is expected to generate 1.27 times more return on investment than UPC Technology. However, Li Peng is 1.27 times more volatile than UPC Technology Corp. It trades about 0.01 of its potential returns per unit of risk. UPC Technology Corp is currently generating about -0.07 per unit of risk. If you would invest 764.00 in Li Peng Enterprise on August 25, 2024 and sell it today you would earn a total of 17.00 from holding Li Peng Enterprise or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Li Peng Enterprise vs. UPC Technology Corp
Performance |
| Timeline |
| Li Peng Enterprise |
| UPC Technology Corp |
Li Peng and UPC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Li Peng and UPC Technology
The main advantage of trading using opposite Li Peng and UPC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li Peng position performs unexpectedly, UPC Technology 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 UPC Technology will offset losses from the drop in UPC Technology's long position.| Li Peng vs. Gigastorage Corp | Li Peng vs. CHINA DEVELOPMENT FINANCIAL | Li Peng vs. AVer Information | Li Peng vs. EnTie Commercial Bank |
| UPC Technology vs. USI Corp | UPC Technology vs. Taiwan Styrene Monomer | UPC Technology vs. Asia Polymer Corp | UPC Technology vs. Grand Pacific Petrochemical |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |