Correlation Between Aspeed Technology and Unimicron Technology
Can any of the company-specific risk be diversified away by investing in both Aspeed Technology and Unimicron 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 Aspeed Technology and Unimicron Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspeed Technology and Unimicron Technology Corp, you can compare the effects of market volatilities on Aspeed Technology and Unimicron 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 Aspeed Technology with a short position of Unimicron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and Unimicron Technology.
Diversification Opportunities for Aspeed Technology and Unimicron Technology
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspeed and Unimicron is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed Technology and Unimicron Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimicron Technology Corp and Aspeed 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 Aspeed Technology are associated (or correlated) with Unimicron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimicron Technology Corp has no effect on the direction of Aspeed Technology i.e., Aspeed Technology and Unimicron Technology go up and down completely randomly.
Pair Corralation between Aspeed Technology and Unimicron Technology
Assuming the 90 days trading horizon Aspeed Technology is expected to under-perform the Unimicron Technology. In addition to that, Aspeed Technology is 1.87 times more volatile than Unimicron Technology Corp. It trades about -0.05 of its total potential returns per unit of risk. Unimicron Technology Corp is currently generating about -0.09 per unit of volatility. If you would invest 16,600 in Unimicron Technology Corp on August 28, 2024 and sell it today you would lose (700.00) from holding Unimicron Technology Corp or give up 4.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspeed Technology vs. Unimicron Technology Corp
Performance |
| Timeline |
| Aspeed Technology |
| Unimicron Technology Corp |
Aspeed Technology and Unimicron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and Unimicron Technology
The main advantage of trading using opposite Aspeed Technology and Unimicron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed Technology position performs unexpectedly, Unimicron 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 Unimicron Technology will offset losses from the drop in Unimicron Technology's long position.| Aspeed Technology vs. Global Unichip Corp | Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Unimicron Technology Corp | Aspeed Technology vs. Novatek Microelectronics Corp |
| Unimicron Technology vs. Novatek Microelectronics Corp | Unimicron Technology vs. United Microelectronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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