Correlation Between Ampoc Far and United Microelectronics
Can any of the company-specific risk be diversified away by investing in both Ampoc Far and United Microelectronics 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 Ampoc Far and United Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ampoc Far East Co and United Microelectronics, you can compare the effects of market volatilities on Ampoc Far and United Microelectronics 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 Ampoc Far with a short position of United Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ampoc Far and United Microelectronics.
Diversification Opportunities for Ampoc Far and United Microelectronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ampoc and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ampoc Far East Co and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics and Ampoc Far 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 Ampoc Far East Co are associated (or correlated) with United Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Microelectronics has no effect on the direction of Ampoc Far i.e., Ampoc Far and United Microelectronics go up and down completely randomly.
Pair Corralation between Ampoc Far and United Microelectronics
If you would invest 0.00 in Ampoc Far East Co on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Ampoc Far East Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ampoc Far East Co vs. United Microelectronics
Performance |
| Timeline |
| Ampoc Far East |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| United Microelectronics |
Ampoc Far and United Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ampoc Far and United Microelectronics
The main advantage of trading using opposite Ampoc Far and United Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ampoc Far position performs unexpectedly, United Microelectronics 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 United Microelectronics will offset losses from the drop in United Microelectronics' long position.| Ampoc Far vs. Greatek Electronics | Ampoc Far vs. Stark Technology | Ampoc Far vs. Elan Microelectronics Corp | Ampoc Far vs. Wellell |
| United Microelectronics vs. Taiwan Semiconductor Manufacturing | United Microelectronics vs. Yang Ming Marine | United Microelectronics vs. ASE Industrial Holding | United Microelectronics vs. AU Optronics |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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