Correlation Between Unimicron Technology and Jetway Information
Can any of the company-specific risk be diversified away by investing in both Unimicron Technology and Jetway Information 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 Jetway Information 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 Jetway Information Co, you can compare the effects of market volatilities on Unimicron Technology and Jetway Information 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 Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unimicron Technology and Jetway Information.
Diversification Opportunities for Unimicron Technology and Jetway Information
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unimicron and Jetway is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Unimicron Technology Corp and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information 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 Jetway Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetway Information has no effect on the direction of Unimicron Technology i.e., Unimicron Technology and Jetway Information go up and down completely randomly.
Pair Corralation between Unimicron Technology and Jetway Information
Assuming the 90 days trading horizon Unimicron Technology Corp is expected to generate 0.9 times more return on investment than Jetway Information. However, Unimicron Technology Corp is 1.12 times less risky than Jetway Information. It trades about -0.04 of its potential returns per unit of risk. Jetway Information Co is currently generating about -0.3 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unimicron Technology Corp vs. Jetway Information Co
Performance |
| Timeline |
| Unimicron Technology Corp |
| Jetway Information |
Unimicron Technology and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unimicron Technology and Jetway Information
The main advantage of trading using opposite Unimicron Technology and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unimicron Technology position performs unexpectedly, Jetway Information 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 Jetway Information will offset losses from the drop in Jetway Information'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 |
| Jetway Information vs. C Media Electronics | Jetway Information vs. Excellence Optoelectronic | Jetway Information vs. Taiwan Chinsan Electronic | Jetway Information vs. Powertech Industrial Co |
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.
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