Correlation Between Actron Technology and U Ming
Can any of the company-specific risk be diversified away by investing in both Actron Technology and U Ming 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 Actron Technology and U Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actron Technology and U Ming Marine Transport, you can compare the effects of market volatilities on Actron Technology and U Ming 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 Actron Technology with a short position of U Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actron Technology and U Ming.
Diversification Opportunities for Actron Technology and U Ming
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Actron and 2606 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Actron Technology and U Ming Marine Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Ming Marine and Actron Technology 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 Actron Technology are associated (or correlated) with U Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Ming Marine has no effect on the direction of Actron Technology i.e., Actron Technology and U Ming go up and down completely randomly.
Pair Corralation between Actron Technology and U Ming
Assuming the 90 days trading horizon Actron Technology is expected to generate 4.93 times less return on investment than U Ming. In addition to that, Actron Technology is 1.4 times more volatile than U Ming Marine Transport. It trades about 0.02 of its total potential returns per unit of risk. U Ming Marine Transport is currently generating about 0.15 per unit of volatility. If you would invest 5,200 in U Ming Marine Transport on September 4, 2024 and sell it today you would earn a total of 650.00 from holding U Ming Marine Transport or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actron Technology vs. U Ming Marine Transport
Performance |
| Timeline |
| Actron Technology |
| U Ming Marine |
Actron Technology and U Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actron Technology and U Ming
The main advantage of trading using opposite Actron Technology and U Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actron Technology position performs unexpectedly, U Ming 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 U Ming will offset losses from the drop in U Ming's long position.| Actron Technology vs. U Ming Marine Transport | Actron Technology vs. Formosa Chemicals Fibre | Actron Technology vs. Shinkong Insurance Co | Actron Technology vs. Asia Metal Industries |
| U Ming vs. Universal Microelectronics Co | U Ming vs. AVerMedia Technologies | U Ming vs. Symtek Automation Asia | U Ming vs. WiseChip Semiconductor |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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