Correlation Between Uxi Unicomp and Winner Medical

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Can any of the company-specific risk be diversified away by investing in both Uxi Unicomp and Winner Medical 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 Uxi Unicomp and Winner Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uxi Unicomp Technology and Winner Medical Co, you can compare the effects of market volatilities on Uxi Unicomp and Winner Medical 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 Uxi Unicomp with a short position of Winner Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uxi Unicomp and Winner Medical.

Diversification Opportunities for Uxi Unicomp and Winner Medical

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Uxi and Winner is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Uxi Unicomp Technology and Winner Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Medical and Uxi Unicomp 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 Uxi Unicomp Technology are associated (or correlated) with Winner Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Medical has no effect on the direction of Uxi Unicomp i.e., Uxi Unicomp and Winner Medical go up and down completely randomly.

Pair Corralation between Uxi Unicomp and Winner Medical

Assuming the 90 days trading horizon Uxi Unicomp Technology is expected to under-perform the Winner Medical. In addition to that, Uxi Unicomp is 1.47 times more volatile than Winner Medical Co. It trades about -0.06 of its total potential returns per unit of risk. Winner Medical Co is currently generating about -0.01 per unit of volatility. If you would invest  4,763  in Winner Medical Co on November 9, 2024 and sell it today you would lose (853.00) from holding Winner Medical Co or give up 17.91% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy93.89%
ValuesDaily Returns

Uxi Unicomp Technology  vs.  Winner Medical Co

 Performance 
       Timeline  
Uxi Unicomp Technology 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Uxi Unicomp Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Winner Medical 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Over the last 90 days Winner Medical Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Winner Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

Uxi Unicomp and Winner Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Uxi Unicomp and Winner Medical

The main advantage of trading using opposite Uxi Unicomp and Winner Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uxi Unicomp position performs unexpectedly, Winner Medical 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 Winner Medical will offset losses from the drop in Winner Medical's long position.
The idea behind Uxi Unicomp Technology and Winner Medical Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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