Correlation Between Tingyi Holding and Uni President
Can any of the company-specific risk be diversified away by investing in both Tingyi Holding and Uni President 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 Tingyi Holding and Uni President into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tingyi Holding Corp and Uni President Enterprises Corp, you can compare the effects of market volatilities on Tingyi Holding and Uni President 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 Tingyi Holding with a short position of Uni President. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tingyi Holding and Uni President.
Diversification Opportunities for Tingyi Holding and Uni President
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tingyi and Uni is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tingyi Holding Corp and Uni President Enterprises Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uni President Enterp and Tingyi Holding 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 Tingyi Holding Corp are associated (or correlated) with Uni President. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uni President Enterp has no effect on the direction of Tingyi Holding i.e., Tingyi Holding and Uni President go up and down completely randomly.
Pair Corralation between Tingyi Holding and Uni President
Assuming the 90 days trading horizon Tingyi Holding is expected to generate 1.04 times less return on investment than Uni President. In addition to that, Tingyi Holding is 1.69 times more volatile than Uni President Enterprises Corp. It trades about 0.04 of its total potential returns per unit of risk. Uni President Enterprises Corp is currently generating about 0.07 per unit of volatility. If you would invest 8,280 in Uni President Enterprises Corp on August 28, 2024 and sell it today you would earn a total of 420.00 from holding Uni President Enterprises Corp or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tingyi Holding Corp vs. Uni President Enterprises Corp
Performance |
| Timeline |
| Tingyi Holding Corp |
| Uni President Enterp |
Tingyi Holding and Uni President Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tingyi Holding and Uni President
The main advantage of trading using opposite Tingyi Holding and Uni President positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tingyi Holding position performs unexpectedly, Uni President 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 Uni President will offset losses from the drop in Uni President's long position.| Tingyi Holding vs. Uni President Enterprises Corp | Tingyi Holding vs. Lien Hwa Industrial | Tingyi Holding vs. Great Wall Enterprise | Tingyi Holding vs. Standard Foods Corp |
| Uni President vs. Taiwan Cement Corp | Uni President vs. Ruentex Development Co | Uni President vs. Symtek Automation Asia | Uni President vs. CTCI Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |