Correlation Between Unimicron Technology and Integrated Service
Can any of the company-specific risk be diversified away by investing in both Unimicron Technology and Integrated Service 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 Integrated Service 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 Integrated Service Technology, you can compare the effects of market volatilities on Unimicron Technology and Integrated Service 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 Integrated Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unimicron Technology and Integrated Service.
Diversification Opportunities for Unimicron Technology and Integrated Service
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unimicron and Integrated is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Unimicron Technology Corp and Integrated Service Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Service 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 Integrated Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Service has no effect on the direction of Unimicron Technology i.e., Unimicron Technology and Integrated Service go up and down completely randomly.
Pair Corralation between Unimicron Technology and Integrated Service
Assuming the 90 days trading horizon Unimicron Technology is expected to generate 18.75 times less return on investment than Integrated Service. But when comparing it to its historical volatility, Unimicron Technology Corp is 1.11 times less risky than Integrated Service. It trades about 0.0 of its potential returns per unit of risk. Integrated Service Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,351 in Integrated Service Technology on August 28, 2024 and sell it today you would earn a total of 3,499 from holding Integrated Service Technology or generate 30.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Unimicron Technology Corp vs. Integrated Service Technology
Performance |
| Timeline |
| Unimicron Technology Corp |
| Integrated Service |
Unimicron Technology and Integrated Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unimicron Technology and Integrated Service
The main advantage of trading using opposite Unimicron Technology and Integrated Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unimicron Technology position performs unexpectedly, Integrated Service 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 Integrated Service will offset losses from the drop in Integrated Service's long position.| Unimicron Technology vs. Novatek Microelectronics Corp | Unimicron Technology vs. United Microelectronics |
| Integrated Service vs. Global Unichip Corp | Integrated Service vs. Asmedia Technology | Integrated Service vs. Unimicron Technology Corp | Integrated Service vs. Novatek Microelectronics 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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