Correlation Between United Integrated and Kuo Toong
Can any of the company-specific risk be diversified away by investing in both United Integrated and Kuo Toong 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 Kuo Toong 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 Kuo Toong International, you can compare the effects of market volatilities on United Integrated and Kuo Toong 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 Kuo Toong. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Integrated and Kuo Toong.
Diversification Opportunities for United Integrated and Kuo Toong
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Kuo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding United Integrated Services and Kuo Toong International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuo Toong International 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 Kuo Toong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuo Toong International has no effect on the direction of United Integrated i.e., United Integrated and Kuo Toong go up and down completely randomly.
Pair Corralation between United Integrated and Kuo Toong
Assuming the 90 days trading horizon United Integrated Services is expected to generate 0.99 times more return on investment than Kuo Toong. However, United Integrated Services is 1.01 times less risky than Kuo Toong. It trades about 0.5 of its potential returns per unit of risk. Kuo Toong International is currently generating about -0.23 per unit of risk. If you would invest 34,250 in United Integrated Services on September 5, 2024 and sell it today you would earn a total of 9,850 from holding United Integrated Services or generate 28.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
United Integrated Services vs. Kuo Toong International
Performance |
| Timeline |
| United Integrated |
| Kuo Toong International |
United Integrated and Kuo Toong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Integrated and Kuo Toong
The main advantage of trading using opposite United Integrated and Kuo Toong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Integrated position performs unexpectedly, Kuo Toong 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 Kuo Toong will offset losses from the drop in Kuo Toong's long position.| United Integrated vs. Universal Microelectronics Co | United Integrated vs. AVerMedia Technologies | United Integrated vs. Symtek Automation Asia | United Integrated vs. WiseChip Semiconductor |
| Kuo Toong vs. Nankang Rubber Tire | Kuo Toong vs. Rich Development Co | Kuo Toong vs. Kung Sing Engineering | Kuo Toong vs. Advanced Lithium Electrochemistry |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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