Correlation Between Uniform Industrial and AVerMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Uniform Industrial and AVerMedia Technologies 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 Uniform Industrial and AVerMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniform Industrial Corp and AVerMedia Technologies, you can compare the effects of market volatilities on Uniform Industrial and AVerMedia Technologies 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 Uniform Industrial with a short position of AVerMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniform Industrial and AVerMedia Technologies.
Diversification Opportunities for Uniform Industrial and AVerMedia Technologies
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uniform and AVerMedia is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Uniform Industrial Corp and AVerMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVerMedia Technologies and Uniform Industrial 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 Uniform Industrial Corp are associated (or correlated) with AVerMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVerMedia Technologies has no effect on the direction of Uniform Industrial i.e., Uniform Industrial and AVerMedia Technologies go up and down completely randomly.
Pair Corralation between Uniform Industrial and AVerMedia Technologies
Assuming the 90 days trading horizon Uniform Industrial Corp is expected to under-perform the AVerMedia Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Uniform Industrial Corp is 1.25 times less risky than AVerMedia Technologies. The stock trades about -0.08 of its potential returns per unit of risk. The AVerMedia Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,180 in AVerMedia Technologies on September 4, 2024 and sell it today you would earn a total of 1,880 from holding AVerMedia Technologies or generate 86.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniform Industrial Corp vs. AVerMedia Technologies
Performance |
| Timeline |
| Uniform Industrial Corp |
| AVerMedia Technologies |
Uniform Industrial and AVerMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniform Industrial and AVerMedia Technologies
The main advantage of trading using opposite Uniform Industrial and AVerMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniform Industrial position performs unexpectedly, AVerMedia Technologies 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 AVerMedia Technologies will offset losses from the drop in AVerMedia Technologies' long position.| Uniform Industrial vs. Taiwan Semiconductor Manufacturing | Uniform Industrial vs. Yang Ming Marine | Uniform Industrial vs. ASE Industrial Holding | Uniform Industrial vs. AU Optronics |
| AVerMedia Technologies vs. Tainan Spinning Co | AVerMedia Technologies vs. Chia Her Industrial | AVerMedia Technologies vs. WiseChip Semiconductor | AVerMedia Technologies vs. Novatek Microelectronics 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |