Correlation Between Senheng New and Uchi Technologies
Can any of the company-specific risk be diversified away by investing in both Senheng New and Uchi Technologies 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 Senheng New and Uchi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senheng New Retail and Uchi Technologies Bhd, you can compare the effects of market volatilities on Senheng New and Uchi Technologies 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 Senheng New with a short position of Uchi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senheng New and Uchi Technologies.
Diversification Opportunities for Senheng New and Uchi Technologies
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Senheng and Uchi is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Senheng New Retail and Uchi Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uchi Technologies Bhd and Senheng New 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 Senheng New Retail are associated (or correlated) with Uchi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uchi Technologies Bhd has no effect on the direction of Senheng New i.e., Senheng New and Uchi Technologies go up and down completely randomly.
Pair Corralation between Senheng New and Uchi Technologies
Assuming the 90 days trading horizon Senheng New is expected to generate 10.75 times less return on investment than Uchi Technologies. In addition to that, Senheng New is 1.64 times more volatile than Uchi Technologies Bhd. It trades about 0.01 of its total potential returns per unit of risk. Uchi Technologies Bhd is currently generating about 0.11 per unit of volatility. If you would invest 385.00 in Uchi Technologies Bhd on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Uchi Technologies Bhd or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Senheng New Retail vs. Uchi Technologies Bhd
Performance |
| Timeline |
| Senheng New Retail |
| Uchi Technologies Bhd |
Senheng New and Uchi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senheng New and Uchi Technologies
The main advantage of trading using opposite Senheng New and Uchi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senheng New position performs unexpectedly, Uchi Technologies 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 Uchi Technologies will offset losses from the drop in Uchi Technologies' long position.| Senheng New vs. PMB Technology Bhd | Senheng New vs. Press Metal Bhd | Senheng New vs. YX Precious Metals | Senheng New vs. CPE Technology Berhad |
| Uchi Technologies vs. Rubberex M | Uchi Technologies vs. YX Precious Metals | Uchi Technologies vs. Daya Materials Bhd | Uchi Technologies vs. Alliance Financial Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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