Correlation Between Unimicron Technology and Sitronix Technology
Can any of the company-specific risk be diversified away by investing in both Unimicron Technology and Sitronix 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 Sitronix 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 Sitronix Technology Corp, you can compare the effects of market volatilities on Unimicron Technology and Sitronix 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 Sitronix Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unimicron Technology and Sitronix Technology.
Diversification Opportunities for Unimicron Technology and Sitronix Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unimicron and Sitronix is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Unimicron Technology Corp and Sitronix Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitronix Technology Corp 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 Sitronix Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitronix Technology Corp has no effect on the direction of Unimicron Technology i.e., Unimicron Technology and Sitronix Technology go up and down completely randomly.
Pair Corralation between Unimicron Technology and Sitronix Technology
Assuming the 90 days trading horizon Unimicron Technology Corp is expected to under-perform the Sitronix Technology. In addition to that, Unimicron Technology is 1.29 times more volatile than Sitronix Technology Corp. It trades about -0.1 of its total potential returns per unit of risk. Sitronix Technology Corp is currently generating about -0.09 per unit of volatility. If you would invest 21,600 in Sitronix Technology Corp on October 25, 2024 and sell it today you would lose (650.00) from holding Sitronix Technology Corp or give up 3.01% 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. Sitronix Technology Corp
Performance |
| Timeline |
| Unimicron Technology Corp |
| Sitronix Technology Corp |
Unimicron Technology and Sitronix Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unimicron Technology and Sitronix Technology
The main advantage of trading using opposite Unimicron Technology and Sitronix Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unimicron Technology position performs unexpectedly, Sitronix 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 Sitronix Technology will offset losses from the drop in Sitronix 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 |
| Sitronix Technology vs. Unimicron Technology Corp | Sitronix Technology vs. Kinsus Interconnect Technology | Sitronix Technology vs. Novatek Microelectronics Corp | Sitronix Technology 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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