Correlation Between United Radiant and I Sheng
Can any of the company-specific risk be diversified away by investing in both United Radiant and I Sheng 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 United Radiant and I Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Radiant Technology and I Sheng Electric Wire, you can compare the effects of market volatilities on United Radiant and I Sheng 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 United Radiant with a short position of I Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Radiant and I Sheng.
Diversification Opportunities for United Radiant and I Sheng
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and 6115 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding United Radiant Technology and I Sheng Electric Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Sheng Electric and United Radiant 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 United Radiant Technology are associated (or correlated) with I Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Sheng Electric has no effect on the direction of United Radiant i.e., United Radiant and I Sheng go up and down completely randomly.
Pair Corralation between United Radiant and I Sheng
Assuming the 90 days trading horizon United Radiant Technology is expected to under-perform the I Sheng. In addition to that, United Radiant is 3.64 times more volatile than I Sheng Electric Wire. It trades about -0.16 of its total potential returns per unit of risk. I Sheng Electric Wire is currently generating about -0.1 per unit of volatility. If you would invest 5,130 in I Sheng Electric Wire on October 23, 2024 and sell it today you would lose (50.00) from holding I Sheng Electric Wire or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Radiant Technology vs. I Sheng Electric Wire
Performance |
| Timeline |
| United Radiant Technology |
| I Sheng Electric |
United Radiant and I Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Radiant and I Sheng
The main advantage of trading using opposite United Radiant and I Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Radiant position performs unexpectedly, I Sheng 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 I Sheng will offset losses from the drop in I Sheng's long position.| United Radiant vs. Simple Mart Retail | United Radiant vs. Data International Co | United Radiant vs. Cheng Mei Materials | United Radiant vs. Newretail Co |
| I Sheng vs. Microelectronics Technology | I Sheng vs. United Radiant Technology | I Sheng vs. Chicony Power Technology | I Sheng vs. Energenesis Biomedical 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |