Correlation Between Chin Poon and Unimicron Technology
Can any of the company-specific risk be diversified away by investing in both Chin Poon and Unimicron Technology 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 Chin Poon and Unimicron Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chin Poon Industrial Co and Unimicron Technology Corp, you can compare the effects of market volatilities on Chin Poon and Unimicron Technology 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 Chin Poon with a short position of Unimicron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chin Poon and Unimicron Technology.
Diversification Opportunities for Chin Poon and Unimicron Technology
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chin and Unimicron is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chin Poon Industrial Co and Unimicron Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimicron Technology Corp and Chin Poon 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 Chin Poon Industrial Co are associated (or correlated) with Unimicron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimicron Technology Corp has no effect on the direction of Chin Poon i.e., Chin Poon and Unimicron Technology go up and down completely randomly.
Pair Corralation between Chin Poon and Unimicron Technology
Assuming the 90 days trading horizon Chin Poon Industrial Co is expected to generate 0.61 times more return on investment than Unimicron Technology. However, Chin Poon Industrial Co is 1.64 times less risky than Unimicron Technology. It trades about -0.06 of its potential returns per unit of risk. Unimicron Technology Corp is currently generating about -0.05 per unit of risk. If you would invest 4,520 in Chin Poon Industrial Co on August 30, 2024 and sell it today you would lose (700.00) from holding Chin Poon Industrial Co or give up 15.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chin Poon Industrial Co vs. Unimicron Technology Corp
Performance |
| Timeline |
| Chin Poon Industrial |
| Unimicron Technology Corp |
Chin Poon and Unimicron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chin Poon and Unimicron Technology
The main advantage of trading using opposite Chin Poon and Unimicron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chin Poon position performs unexpectedly, Unimicron Technology 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 Unimicron Technology will offset losses from the drop in Unimicron Technology's long position.| Chin Poon vs. Compeq Manufacturing Co | Chin Poon vs. Unitech Printed Circuit | Chin Poon vs. Gold Circuit Electronics | Chin Poon vs. WUS Printed Circuit |
| Unimicron Technology vs. Nan Ya Printed | Unimicron Technology vs. Kinsus Interconnect Technology | Unimicron Technology vs. Novatek Microelectronics Corp | Unimicron Technology vs. LARGAN Precision Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |