Correlation Between Union Bank and Joinsoon Electronics
Can any of the company-specific risk be diversified away by investing in both Union Bank and Joinsoon Electronics 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 Union Bank and Joinsoon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Bank of and Joinsoon Electronics MFG, you can compare the effects of market volatilities on Union Bank and Joinsoon Electronics 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 Union Bank with a short position of Joinsoon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Joinsoon Electronics.
Diversification Opportunities for Union Bank and Joinsoon Electronics
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Union and Joinsoon is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank of and Joinsoon Electronics MFG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joinsoon Electronics MFG and Union Bank 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 Union Bank of are associated (or correlated) with Joinsoon Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joinsoon Electronics MFG has no effect on the direction of Union Bank i.e., Union Bank and Joinsoon Electronics go up and down completely randomly.
Pair Corralation between Union Bank and Joinsoon Electronics
Assuming the 90 days trading horizon Union Bank of is expected to generate 0.51 times more return on investment than Joinsoon Electronics. However, Union Bank of is 1.96 times less risky than Joinsoon Electronics. It trades about 0.04 of its potential returns per unit of risk. Joinsoon Electronics MFG is currently generating about -0.05 per unit of risk. If you would invest 1,420 in Union Bank of on August 25, 2024 and sell it today you would earn a total of 125.00 from holding Union Bank of or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Bank of vs. Joinsoon Electronics MFG
Performance |
| Timeline |
| Union Bank |
| Joinsoon Electronics MFG |
Union Bank and Joinsoon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Joinsoon Electronics
The main advantage of trading using opposite Union Bank and Joinsoon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank position performs unexpectedly, Joinsoon Electronics 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 Joinsoon Electronics will offset losses from the drop in Joinsoon Electronics' long position.| Union Bank vs. Taiwan Business Bank | Union Bank vs. Chang Hwa Commercial | Union Bank vs. EnTie Commercial Bank | Union Bank vs. Bank of Kaohsiung |
| Joinsoon Electronics vs. Feng Hsin Steel | Joinsoon Electronics vs. First Insurance Co | Joinsoon Electronics vs. Taiwan Cooperative Financial | Joinsoon Electronics vs. Union Bank of |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |