Correlation Between Unimicron Technology and Emerging Display
Can any of the company-specific risk be diversified away by investing in both Unimicron Technology and Emerging Display 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 Unimicron Technology and Emerging Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unimicron Technology Corp and Emerging Display Technologies, you can compare the effects of market volatilities on Unimicron Technology and Emerging Display 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 Unimicron Technology with a short position of Emerging Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unimicron Technology and Emerging Display.
Diversification Opportunities for Unimicron Technology and Emerging Display
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unimicron and Emerging is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Unimicron Technology Corp and Emerging Display Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Display Tec and Unimicron Technology 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 Unimicron Technology Corp are associated (or correlated) with Emerging Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Display Tec has no effect on the direction of Unimicron Technology i.e., Unimicron Technology and Emerging Display go up and down completely randomly.
Pair Corralation between Unimicron Technology and Emerging Display
Assuming the 90 days trading horizon Unimicron Technology Corp is expected to generate 1.13 times more return on investment than Emerging Display. However, Unimicron Technology is 1.13 times more volatile than Emerging Display Technologies. It trades about -0.04 of its potential returns per unit of risk. Emerging Display Technologies is currently generating about -0.05 per unit of risk. If you would invest 14,150 in Unimicron Technology Corp on October 29, 2024 and sell it today you would lose (250.00) from holding Unimicron Technology Corp or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unimicron Technology Corp vs. Emerging Display Technologies
Performance |
| Timeline |
| Unimicron Technology Corp |
| Emerging Display Tec |
Unimicron Technology and Emerging Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unimicron Technology and Emerging Display
The main advantage of trading using opposite Unimicron Technology and Emerging Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unimicron Technology position performs unexpectedly, Emerging Display 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 Emerging Display will offset losses from the drop in Emerging Display's long position.| Unimicron Technology vs. Nan Ya Printed | Unimicron Technology vs. Kinsus Interconnect Technology | Unimicron Technology vs. Novatek Microelectronics Corp | Unimicron Technology vs. LARGAN Precision Co |
| Emerging Display vs. Unimicron Technology Corp | Emerging Display vs. Kinsus Interconnect Technology | Emerging Display vs. Novatek Microelectronics Corp | Emerging Display vs. Delta Electronics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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