Correlation Between Uniform Industrial and I Jang
Can any of the company-specific risk be diversified away by investing in both Uniform Industrial and I Jang 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 I Jang 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 I Jang Industrial, you can compare the effects of market volatilities on Uniform Industrial and I Jang 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 I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniform Industrial and I Jang.
Diversification Opportunities for Uniform Industrial and I Jang
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Uniform and 8342 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Uniform Industrial Corp and I Jang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Jang Industrial 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 I Jang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Jang Industrial has no effect on the direction of Uniform Industrial i.e., Uniform Industrial and I Jang go up and down completely randomly.
Pair Corralation between Uniform Industrial and I Jang
Assuming the 90 days trading horizon Uniform Industrial is expected to generate 2.88 times less return on investment than I Jang. In addition to that, Uniform Industrial is 1.32 times more volatile than I Jang Industrial. It trades about 0.02 of its total potential returns per unit of risk. I Jang Industrial is currently generating about 0.06 per unit of volatility. If you would invest 5,018 in I Jang Industrial on September 3, 2024 and sell it today you would earn a total of 3,582 from holding I Jang Industrial or generate 71.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniform Industrial Corp vs. I Jang Industrial
Performance |
| Timeline |
| Uniform Industrial Corp |
| I Jang Industrial |
Uniform Industrial and I Jang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniform Industrial and I Jang
The main advantage of trading using opposite Uniform Industrial and I Jang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniform Industrial position performs unexpectedly, I Jang 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 I Jang will offset losses from the drop in I Jang's 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 |
| I Jang vs. AVerMedia Technologies | I Jang vs. Min Aik Technology | I Jang vs. Uniform Industrial Corp | I Jang vs. WiseChip Semiconductor |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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