Correlation Between UET United and KYUSHU EL
Can any of the company-specific risk be diversified away by investing in both UET United and KYUSHU EL 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 UET United and KYUSHU EL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UET United Electronic and KYUSHU EL PWR, you can compare the effects of market volatilities on UET United and KYUSHU EL 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 UET United with a short position of KYUSHU EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and KYUSHU EL.
Diversification Opportunities for UET United and KYUSHU EL
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UET and KYUSHU is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic and KYUSHU EL PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYUSHU EL PWR and UET United 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 UET United Electronic are associated (or correlated) with KYUSHU EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYUSHU EL PWR has no effect on the direction of UET United i.e., UET United and KYUSHU EL go up and down completely randomly.
Pair Corralation between UET United and KYUSHU EL
Assuming the 90 days trading horizon UET United Electronic is expected to generate 1.95 times more return on investment than KYUSHU EL. However, UET United is 1.95 times more volatile than KYUSHU EL PWR. It trades about 0.02 of its potential returns per unit of risk. KYUSHU EL PWR is currently generating about -0.05 per unit of risk. If you would invest 98.00 in UET United Electronic on November 2, 2024 and sell it today you would lose (3.00) from holding UET United Electronic or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
UET United Electronic vs. KYUSHU EL PWR
Performance |
| Timeline |
| UET United Electronic |
| KYUSHU EL PWR |
UET United and KYUSHU EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and KYUSHU EL
The main advantage of trading using opposite UET United and KYUSHU EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United position performs unexpectedly, KYUSHU EL 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 KYUSHU EL will offset losses from the drop in KYUSHU EL's long position.| UET United vs. MTY Food Group | UET United vs. CarsalesCom | UET United vs. Cal Maine Foods | UET United vs. Lamar Advertising |
| KYUSHU EL vs. Scottish Mortgage Investment | KYUSHU EL vs. PRECISION DRILLING P | KYUSHU EL vs. Urban Outfitters | KYUSHU EL vs. URBAN OUTFITTERS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |