Correlation Between United Microelectronics and Phoenix Silicon
Can any of the company-specific risk be diversified away by investing in both United Microelectronics and Phoenix Silicon 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 Phoenix Silicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and Phoenix Silicon International, you can compare the effects of market volatilities on United Microelectronics and Phoenix Silicon 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 Phoenix Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and Phoenix Silicon.
Diversification Opportunities for United Microelectronics and Phoenix Silicon
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Phoenix is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and Phoenix Silicon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Silicon Inte 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 Phoenix Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Silicon Inte has no effect on the direction of United Microelectronics i.e., United Microelectronics and Phoenix Silicon go up and down completely randomly.
Pair Corralation between United Microelectronics and Phoenix Silicon
Assuming the 90 days trading horizon United Microelectronics is expected to under-perform the Phoenix Silicon. But the stock apears to be less risky and, when comparing its historical volatility, United Microelectronics is 3.11 times less risky than Phoenix Silicon. The stock trades about -0.34 of its potential returns per unit of risk. The Phoenix Silicon International is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 12,200 in Phoenix Silicon International on August 31, 2024 and sell it today you would earn a total of 1,050 from holding Phoenix Silicon International or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Microelectronics vs. Phoenix Silicon International
Performance |
| Timeline |
| United Microelectronics |
| Phoenix Silicon Inte |
United Microelectronics and Phoenix Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and Phoenix Silicon
The main advantage of trading using opposite United Microelectronics and Phoenix Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics position performs unexpectedly, Phoenix Silicon 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 Phoenix Silicon will offset losses from the drop in Phoenix Silicon'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 |
| Phoenix Silicon vs. Scientech Corp | Phoenix Silicon vs. Sitronix Technology Corp | Phoenix Silicon vs. Kinsus Interconnect Technology | Phoenix Silicon vs. Nuvoton Technology 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |