Correlation Between Orient Semiconductor and U Ming
Can any of the company-specific risk be diversified away by investing in both Orient Semiconductor and U Ming 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 Orient Semiconductor and U Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orient Semiconductor Electronics and U Ming Marine Transport, you can compare the effects of market volatilities on Orient Semiconductor and U Ming 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 Orient Semiconductor with a short position of U Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orient Semiconductor and U Ming.
Diversification Opportunities for Orient Semiconductor and U Ming
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Orient and 2606 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Orient Semiconductor Electroni and U Ming Marine Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Ming Marine and Orient Semiconductor 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 Orient Semiconductor Electronics are associated (or correlated) with U Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Ming Marine has no effect on the direction of Orient Semiconductor i.e., Orient Semiconductor and U Ming go up and down completely randomly.
Pair Corralation between Orient Semiconductor and U Ming
Assuming the 90 days trading horizon Orient Semiconductor Electronics is expected to under-perform the U Ming. In addition to that, Orient Semiconductor is 1.0 times more volatile than U Ming Marine Transport. It trades about -0.08 of its total potential returns per unit of risk. U Ming Marine Transport is currently generating about 0.22 per unit of volatility. If you would invest 5,380 in U Ming Marine Transport on October 22, 2024 and sell it today you would earn a total of 540.00 from holding U Ming Marine Transport or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Orient Semiconductor Electroni vs. U Ming Marine Transport
Performance |
| Timeline |
| Orient Semiconductor |
| U Ming Marine |
Orient Semiconductor and U Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orient Semiconductor and U Ming
The main advantage of trading using opposite Orient Semiconductor and U Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orient Semiconductor position performs unexpectedly, U Ming 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 U Ming will offset losses from the drop in U Ming's long position.| Orient Semiconductor vs. Macronix International Co | Orient Semiconductor vs. Silicon Integrated Systems | Orient Semiconductor vs. Winbond Electronics Corp | Orient Semiconductor vs. Mosel Vitelic |
| U Ming vs. Sincere Navigation Corp | U Ming vs. Wan Hai Lines | U Ming vs. Yang Ming Marine | U Ming vs. Formosa Chemicals Fibre |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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