Correlation Between Unimicron Technology and Adata Technology
Can any of the company-specific risk be diversified away by investing in both Unimicron Technology and Adata Technology 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 Adata Technology 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 Adata Technology Co, you can compare the effects of market volatilities on Unimicron Technology and Adata Technology 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 Adata Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unimicron Technology and Adata Technology.
Diversification Opportunities for Unimicron Technology and Adata Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Unimicron and Adata is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Unimicron Technology Corp and Adata Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adata Technology 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 Adata Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adata Technology has no effect on the direction of Unimicron Technology i.e., Unimicron Technology and Adata Technology go up and down completely randomly.
Pair Corralation between Unimicron Technology and Adata Technology
Assuming the 90 days trading horizon Unimicron Technology Corp is expected to generate 0.83 times more return on investment than Adata Technology. However, Unimicron Technology Corp is 1.2 times less risky than Adata Technology. It trades about -0.04 of its potential returns per unit of risk. Adata Technology Co 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unimicron Technology Corp vs. Adata Technology Co
Performance |
| Timeline |
| Unimicron Technology Corp |
| Adata Technology |
Unimicron Technology and Adata Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unimicron Technology and Adata Technology
The main advantage of trading using opposite Unimicron Technology and Adata Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unimicron Technology position performs unexpectedly, Adata Technology 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 Adata Technology will offset losses from the drop in Adata Technology'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 |
| Adata Technology vs. WIN Semiconductors | Adata Technology vs. Visual Photonics Epitaxy | Adata Technology vs. GlobalWafers Co | Adata Technology vs. Unimicron Technology 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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