Correlation Between UPI Semiconductor and Shin Kong
Can any of the company-specific risk be diversified away by investing in both UPI Semiconductor and Shin Kong 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 UPI Semiconductor and Shin Kong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between uPI Semiconductor Corp and Shin Kong Financial, you can compare the effects of market volatilities on UPI Semiconductor and Shin Kong 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 UPI Semiconductor with a short position of Shin Kong. Check out your portfolio center. Please also check ongoing floating volatility patterns of UPI Semiconductor and Shin Kong.
Diversification Opportunities for UPI Semiconductor and Shin Kong
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UPI and Shin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding uPI Semiconductor Corp and Shin Kong Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Kong Financial and UPI Semiconductor 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 uPI Semiconductor Corp are associated (or correlated) with Shin Kong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Kong Financial has no effect on the direction of UPI Semiconductor i.e., UPI Semiconductor and Shin Kong go up and down completely randomly.
Pair Corralation between UPI Semiconductor and Shin Kong
Assuming the 90 days trading horizon uPI Semiconductor Corp is expected to under-perform the Shin Kong. In addition to that, UPI Semiconductor is 2.22 times more volatile than Shin Kong Financial. It trades about -0.02 of its total potential returns per unit of risk. Shin Kong Financial is currently generating about 0.08 per unit of volatility. If you would invest 2,915 in Shin Kong Financial on September 14, 2024 and sell it today you would earn a total of 650.00 from holding Shin Kong Financial or generate 22.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
uPI Semiconductor Corp vs. Shin Kong Financial
Performance |
| Timeline |
| uPI Semiconductor Corp |
| Shin Kong Financial |
UPI Semiconductor and Shin Kong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UPI Semiconductor and Shin Kong
The main advantage of trading using opposite UPI Semiconductor and Shin Kong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UPI Semiconductor position performs unexpectedly, Shin Kong 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 Shin Kong will offset losses from the drop in Shin Kong's long position.| UPI Semiconductor vs. Cayenne Entertainment Technology | UPI Semiconductor vs. U Tech Media Corp | UPI Semiconductor vs. Grand Plastic Technology | UPI Semiconductor vs. C Media Electronics |
| Shin Kong vs. MediaTek | Shin Kong vs. X Legend Entertainment Co | Shin Kong vs. Min Aik Technology | Shin Kong vs. Posiflex Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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