Correlation Between U Ming and Data International
Can any of the company-specific risk be diversified away by investing in both U Ming and Data International 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 Data International 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 Data International Co, you can compare the effects of market volatilities on U Ming and Data International 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 Data International. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Ming and Data International.
Diversification Opportunities for U Ming and Data International
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 2606 and Data is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding U Ming Marine Transport and Data International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data International 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 Data International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data International has no effect on the direction of U Ming i.e., U Ming and Data International go up and down completely randomly.
Pair Corralation between U Ming and Data International
Assuming the 90 days trading horizon U Ming Marine Transport is expected to generate 0.36 times more return on investment than Data International. However, U Ming Marine Transport is 2.74 times less risky than Data International. It trades about 0.28 of its potential returns per unit of risk. Data International Co is currently generating about -0.35 per unit of risk. If you would invest 5,520 in U Ming Marine Transport on August 29, 2024 and sell it today you would earn a total of 440.00 from holding U Ming Marine Transport or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Ming Marine Transport vs. Data International Co
Performance |
| Timeline |
| U Ming Marine |
| Data International |
U Ming and Data International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Ming and Data International
The main advantage of trading using opposite U Ming and Data International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Ming position performs unexpectedly, Data International 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 Data International will offset losses from the drop in Data International's long position.| U Ming vs. Sincere Navigation Corp | U Ming vs. Wan Hai Lines | U Ming vs. Yang Ming Marine | U Ming vs. Formosa Chemicals Fibre |
| Data International vs. Hon Hai Precision | Data International vs. Delta Electronics | Data International vs. LARGAN Precision Co | Data International vs. E Ink Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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