Correlation Between United Microelectronics and Genesyslogic
Can any of the company-specific risk be diversified away by investing in both United Microelectronics and Genesyslogic 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 Genesyslogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and Genesyslogic, you can compare the effects of market volatilities on United Microelectronics and Genesyslogic 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 Genesyslogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and Genesyslogic.
Diversification Opportunities for United Microelectronics and Genesyslogic
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Genesyslogic is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and Genesyslogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesyslogic 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 Genesyslogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesyslogic has no effect on the direction of United Microelectronics i.e., United Microelectronics and Genesyslogic go up and down completely randomly.
Pair Corralation between United Microelectronics and Genesyslogic
Assuming the 90 days trading horizon United Microelectronics is expected to under-perform the Genesyslogic. But the stock apears to be less risky and, when comparing its historical volatility, United Microelectronics is 4.08 times less risky than Genesyslogic. The stock trades about -0.31 of its potential returns per unit of risk. The Genesyslogic is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 14,200 in Genesyslogic on September 13, 2024 and sell it today you would earn a total of 2,950 from holding Genesyslogic or generate 20.77% 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. Genesyslogic
Performance |
| Timeline |
| United Microelectronics |
| Genesyslogic |
United Microelectronics and Genesyslogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and Genesyslogic
The main advantage of trading using opposite United Microelectronics and Genesyslogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics position performs unexpectedly, Genesyslogic 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 Genesyslogic will offset losses from the drop in Genesyslogic'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 |
| Genesyslogic vs. Realtek Semiconductor Corp | Genesyslogic vs. Kinsus Interconnect Technology | Genesyslogic vs. Faraday Technology Corp | Genesyslogic vs. Etron Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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