Correlation Between U Media and Da Lue
Can any of the company-specific risk be diversified away by investing in both U Media and Da Lue 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 U Media and Da Lue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Media Communications and Da Lue International, you can compare the effects of market volatilities on U Media and Da Lue 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 U Media with a short position of Da Lue. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Media and Da Lue.
Diversification Opportunities for U Media and Da Lue
Pay attention - limited upside
The 3 months correlation between 6470 and 4804 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Media Communications and Da Lue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Da Lue International and U Media 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 U Media Communications are associated (or correlated) with Da Lue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Da Lue International has no effect on the direction of U Media i.e., U Media and Da Lue go up and down completely randomly.
Pair Corralation between U Media and Da Lue
If you would invest 437.00 in Da Lue International on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Da Lue International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
U Media Communications vs. Da Lue International
Performance |
| Timeline |
| U Media Communications |
| Da Lue International |
U Media and Da Lue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Media and Da Lue
The main advantage of trading using opposite U Media and Da Lue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Media position performs unexpectedly, Da Lue 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 Da Lue will offset losses from the drop in Da Lue's long position.| U Media vs. Lian Hwa Foods | U Media vs. Provision Information CoLtd | U Media vs. Jetway Information Co | U Media vs. Fortune Information Systems |
| Da Lue vs. U Media Communications | Da Lue vs. WinMate Communication INC | Da Lue vs. RiTdisplay Corp | Da Lue vs. Sunspring Metal Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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