Correlation Between Aniplus and UNISEM
Can any of the company-specific risk be diversified away by investing in both Aniplus and UNISEM 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 Aniplus and UNISEM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aniplus and UNISEM Co, you can compare the effects of market volatilities on Aniplus and UNISEM 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 Aniplus with a short position of UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aniplus and UNISEM.
Diversification Opportunities for Aniplus and UNISEM
Very weak diversification
The 3 months correlation between Aniplus and UNISEM is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aniplus and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM and Aniplus 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 Aniplus are associated (or correlated) with UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of Aniplus i.e., Aniplus and UNISEM go up and down completely randomly.
Pair Corralation between Aniplus and UNISEM
Assuming the 90 days trading horizon Aniplus is expected to under-perform the UNISEM. But the stock apears to be less risky and, when comparing its historical volatility, Aniplus is 1.53 times less risky than UNISEM. The stock trades about -0.05 of its potential returns per unit of risk. The UNISEM Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 770,614 in UNISEM Co on September 4, 2024 and sell it today you would lose (194,614) from holding UNISEM Co or give up 25.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aniplus vs. UNISEM Co
Performance |
| Timeline |
| Aniplus |
| UNISEM |
Aniplus and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aniplus and UNISEM
The main advantage of trading using opposite Aniplus and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aniplus position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| Aniplus vs. Lotte Data Communication | Aniplus vs. Ssangyong Information Communication | Aniplus vs. Hankuk Steel Wire | Aniplus vs. Shin Steel Co |
| UNISEM vs. Coloray International Investment | UNISEM vs. NH Investment Securities | UNISEM vs. DB Insurance Co | UNISEM vs. Total Soft Bank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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