Correlation Between CB Industrial and Uchi Technologies
Can any of the company-specific risk be diversified away by investing in both CB Industrial 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 CB Industrial and Uchi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CB Industrial Product and Uchi Technologies Bhd, you can compare the effects of market volatilities on CB Industrial 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 CB Industrial with a short position of Uchi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CB Industrial and Uchi Technologies.
Diversification Opportunities for CB Industrial and Uchi Technologies
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 7076 and Uchi is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding CB Industrial Product 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 CB Industrial 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 CB Industrial Product 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 CB Industrial i.e., CB Industrial and Uchi Technologies go up and down completely randomly.
Pair Corralation between CB Industrial and Uchi Technologies
Assuming the 90 days trading horizon CB Industrial Product is expected to under-perform the Uchi Technologies. In addition to that, CB Industrial is 2.93 times more volatile than Uchi Technologies Bhd. It trades about -0.36 of its total potential returns per unit of risk. Uchi Technologies Bhd is currently generating about -0.16 per unit of volatility. If you would invest 395.00 in Uchi Technologies Bhd on November 5, 2024 and sell it today you would lose (8.00) from holding Uchi Technologies Bhd or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CB Industrial Product vs. Uchi Technologies Bhd
Performance |
| Timeline |
| CB Industrial Product |
| Uchi Technologies Bhd |
CB Industrial and Uchi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CB Industrial and Uchi Technologies
The main advantage of trading using opposite CB Industrial and Uchi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CB Industrial 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.| CB Industrial vs. Sapura Industrial Bhd | CB Industrial vs. Choo Bee Metal | CB Industrial vs. Greatech Technology Bhd | CB Industrial vs. Melewar Industrial Group |
| Uchi Technologies vs. Datasonic Group Bhd | Uchi Technologies vs. Southern Steel Bhd | Uchi Technologies vs. Steel Hawk Berhad | Uchi Technologies vs. Ho Hup Construction |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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