Correlation Between Uchi Technologies and Senheng New
Can any of the company-specific risk be diversified away by investing in both Uchi Technologies and Senheng New 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 Senheng New 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 Senheng New Retail, you can compare the effects of market volatilities on Uchi Technologies and Senheng New 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 Senheng New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uchi Technologies and Senheng New.
Diversification Opportunities for Uchi Technologies and Senheng New
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uchi and Senheng is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Uchi Technologies Bhd and Senheng New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senheng New Retail 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 Senheng New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senheng New Retail has no effect on the direction of Uchi Technologies i.e., Uchi Technologies and Senheng New go up and down completely randomly.
Pair Corralation between Uchi Technologies and Senheng New
Assuming the 90 days trading horizon Uchi Technologies Bhd is expected to generate 0.46 times more return on investment than Senheng New. However, Uchi Technologies Bhd is 2.18 times less risky than Senheng New. It trades about 0.0 of its potential returns per unit of risk. Senheng New Retail is currently generating about -0.05 per unit of risk. If you would invest 302.00 in Uchi Technologies Bhd on January 21, 2025 and sell it today you would lose (3.00) from holding Uchi Technologies Bhd or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uchi Technologies Bhd vs. Senheng New Retail
Performance |
| Timeline |
| Uchi Technologies Bhd |
| Senheng New Retail |
Uchi Technologies and Senheng New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uchi Technologies and Senheng New
The main advantage of trading using opposite Uchi Technologies and Senheng New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uchi Technologies position performs unexpectedly, Senheng New 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 Senheng New will offset losses from the drop in Senheng New's long position.| Uchi Technologies vs. Systech Bhd | Uchi Technologies vs. Sanichi Technology Bhd | Uchi Technologies vs. Leader Steel Holdings | Uchi Technologies vs. MyTech Group Bhd |
| Senheng New vs. Mr D I | Senheng New vs. Radiant Globaltech Bhd | Senheng New vs. Digistar Bhd | Senheng New vs. Minetech Resources 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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