Correlation Between Uchi Technologies and Pantech Group
Can any of the company-specific risk be diversified away by investing in both Uchi Technologies and Pantech Group 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 Uchi Technologies and Pantech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uchi Technologies Bhd and Pantech Group Holdings, you can compare the effects of market volatilities on Uchi Technologies and Pantech Group 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 Uchi Technologies with a short position of Pantech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uchi Technologies and Pantech Group.
Diversification Opportunities for Uchi Technologies and Pantech Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Uchi and Pantech is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Uchi Technologies Bhd and Pantech Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantech Group Holdings and Uchi Technologies 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 Uchi Technologies Bhd are associated (or correlated) with Pantech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantech Group Holdings has no effect on the direction of Uchi Technologies i.e., Uchi Technologies and Pantech Group go up and down completely randomly.
Pair Corralation between Uchi Technologies and Pantech Group
Assuming the 90 days trading horizon Uchi Technologies is expected to generate 2.29 times less return on investment than Pantech Group. In addition to that, Uchi Technologies is 1.12 times more volatile than Pantech Group Holdings. It trades about 0.11 of its total potential returns per unit of risk. Pantech Group Holdings is currently generating about 0.28 per unit of volatility. If you would invest 93.00 in Pantech Group Holdings on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Pantech Group Holdings or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uchi Technologies Bhd vs. Pantech Group Holdings
Performance |
| Timeline |
| Uchi Technologies Bhd |
| Pantech Group Holdings |
Uchi Technologies and Pantech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uchi Technologies and Pantech Group
The main advantage of trading using opposite Uchi Technologies and Pantech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uchi Technologies position performs unexpectedly, Pantech Group 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 Pantech Group will offset losses from the drop in Pantech Group's long position.| Uchi Technologies vs. Rubberex M | Uchi Technologies vs. YX Precious Metals | Uchi Technologies vs. Daya Materials Bhd | Uchi Technologies vs. Alliance Financial Group |
| Pantech Group vs. Senheng New Retail | Pantech Group vs. Press Metal Bhd | Pantech Group vs. Impiana Hotels Bhd | Pantech Group vs. Radiant Globaltech Bhd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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