Correlation Between United Microelectronics and Min Aik
Can any of the company-specific risk be diversified away by investing in both United Microelectronics and Min Aik 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 United Microelectronics and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and Min Aik Technology, you can compare the effects of market volatilities on United Microelectronics and Min Aik 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 United Microelectronics with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and Min Aik.
Diversification Opportunities for United Microelectronics and Min Aik
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between United and Min is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology and United Microelectronics 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 United Microelectronics are associated (or correlated) with Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of United Microelectronics i.e., United Microelectronics and Min Aik go up and down completely randomly.
Pair Corralation between United Microelectronics and Min Aik
Assuming the 90 days trading horizon United Microelectronics is expected to generate 0.52 times more return on investment than Min Aik. However, United Microelectronics is 1.94 times less risky than Min Aik. It trades about -0.35 of its potential returns per unit of risk. Min Aik Technology is currently generating about -0.3 per unit of risk. If you would invest 4,815 in United Microelectronics on September 1, 2024 and sell it today you would lose (460.00) from holding United Microelectronics or give up 9.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Microelectronics vs. Min Aik Technology
Performance |
| Timeline |
| United Microelectronics |
| Min Aik Technology |
United Microelectronics and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and Min Aik
The main advantage of trading using opposite United Microelectronics and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik's long position.| United Microelectronics vs. AU Optronics | United Microelectronics vs. Macronix International Co | United Microelectronics vs. Winbond Electronics Corp | United Microelectronics vs. Hon Hai Precision |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |