Correlation Between United Integrated and Kee Tai
Can any of the company-specific risk be diversified away by investing in both United Integrated and Kee Tai 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 Integrated and Kee Tai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Integrated Services and Kee Tai Properties, you can compare the effects of market volatilities on United Integrated and Kee Tai 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 Integrated with a short position of Kee Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Integrated and Kee Tai.
Diversification Opportunities for United Integrated and Kee Tai
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Kee is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding United Integrated Services and Kee Tai Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kee Tai Properties and United Integrated 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 Integrated Services are associated (or correlated) with Kee Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kee Tai Properties has no effect on the direction of United Integrated i.e., United Integrated and Kee Tai go up and down completely randomly.
Pair Corralation between United Integrated and Kee Tai
Assuming the 90 days trading horizon United Integrated Services is expected to generate 1.07 times more return on investment than Kee Tai. However, United Integrated is 1.07 times more volatile than Kee Tai Properties. It trades about 0.08 of its potential returns per unit of risk. Kee Tai Properties is currently generating about 0.03 per unit of risk. If you would invest 21,050 in United Integrated Services on November 27, 2024 and sell it today you would earn a total of 23,950 from holding United Integrated Services or generate 113.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Integrated Services vs. Kee Tai Properties
Performance |
| Timeline |
| United Integrated |
| Kee Tai Properties |
United Integrated and Kee Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Integrated and Kee Tai
The main advantage of trading using opposite United Integrated and Kee Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Integrated position performs unexpectedly, Kee Tai 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 Kee Tai will offset losses from the drop in Kee Tai's long position.| United Integrated vs. Chicony Electronics Co | United Integrated vs. Delta Electronics | United Integrated vs. Greatek Electronics | United Integrated vs. Realtek Semiconductor Corp |
| Kee Tai vs. Hung Sheng Construction | Kee Tai vs. Chainqui Construction Development | Kee Tai vs. BES Engineering Co | Kee Tai vs. Long Bon International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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