Correlation Between United Microelectronics and Feature Integration
Can any of the company-specific risk be diversified away by investing in both United Microelectronics and Feature Integration 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 Feature Integration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and Feature Integration Technology, you can compare the effects of market volatilities on United Microelectronics and Feature Integration 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 Feature Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and Feature Integration.
Diversification Opportunities for United Microelectronics and Feature Integration
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and Feature is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and Feature Integration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feature Integration 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 Feature Integration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feature Integration has no effect on the direction of United Microelectronics i.e., United Microelectronics and Feature Integration go up and down completely randomly.
Pair Corralation between United Microelectronics and Feature Integration
Assuming the 90 days trading horizon United Microelectronics is expected to generate 2.5 times less return on investment than Feature Integration. But when comparing it to its historical volatility, United Microelectronics is 2.29 times less risky than Feature Integration. It trades about 0.44 of its potential returns per unit of risk. Feature Integration Technology is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 6,630 in Feature Integration Technology on November 27, 2024 and sell it today you would earn a total of 1,300 from holding Feature Integration Technology or generate 19.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Microelectronics vs. Feature Integration Technology
Performance |
| Timeline |
| United Microelectronics |
| Feature Integration |
United Microelectronics and Feature Integration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and Feature Integration
The main advantage of trading using opposite United Microelectronics and Feature Integration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics position performs unexpectedly, Feature Integration 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 Feature Integration will offset losses from the drop in Feature Integration'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 |
| Feature Integration vs. Evergreen International Storage | Feature Integration vs. Trade Van Information Services | Feature Integration vs. Dimerco Data System | Feature Integration vs. OFCO Industrial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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