Correlation Between U Ming and Uni President
Can any of the company-specific risk be diversified away by investing in both U Ming and Uni President 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 U Ming and Uni President into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Ming Marine Transport and Uni President Enterprises Corp, you can compare the effects of market volatilities on U Ming and Uni President 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 U Ming with a short position of Uni President. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Ming and Uni President.
Diversification Opportunities for U Ming and Uni President
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 2606 and Uni is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding U Ming Marine Transport and Uni President Enterprises Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uni President Enterp and U Ming 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 U Ming Marine Transport are associated (or correlated) with Uni President. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uni President Enterp has no effect on the direction of U Ming i.e., U Ming and Uni President go up and down completely randomly.
Pair Corralation between U Ming and Uni President
Assuming the 90 days trading horizon U Ming Marine Transport is expected to generate 1.08 times more return on investment than Uni President. However, U Ming is 1.08 times more volatile than Uni President Enterprises Corp. It trades about 0.43 of its potential returns per unit of risk. Uni President Enterprises Corp is currently generating about -0.14 per unit of risk. If you would invest 5,520 in U Ming Marine Transport on August 27, 2024 and sell it today you would earn a total of 590.00 from holding U Ming Marine Transport or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Ming Marine Transport vs. Uni President Enterprises Corp
Performance |
| Timeline |
| U Ming Marine |
| Uni President Enterp |
U Ming and Uni President Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Ming and Uni President
The main advantage of trading using opposite U Ming and Uni President positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Ming position performs unexpectedly, Uni President 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 Uni President will offset losses from the drop in Uni President's long position.| U Ming vs. Sunny Friend Environmental | U Ming vs. TTET Union Corp | U Ming vs. ECOVE Environment Corp | U Ming vs. Yulon Finance Corp |
| Uni President vs. Taiwan Cement Corp | Uni President vs. Ruentex Development Co | Uni President vs. Symtek Automation Asia | Uni President vs. CTCI 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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