Correlation Between UET United and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both UET United and VARIOUS EATERIES 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS, you can compare the effects of market volatilities on UET United and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and VARIOUS EATERIES.
Diversification Opportunities for UET United and VARIOUS EATERIES
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UET and VARIOUS is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of UET United i.e., UET United and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between UET United and VARIOUS EATERIES
Assuming the 90 days trading horizon UET United Electronic is expected to generate 3.86 times more return on investment than VARIOUS EATERIES. However, UET United is 3.86 times more volatile than VARIOUS EATERIES LS. It trades about 0.26 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about 0.01 per unit of risk. If you would invest 80.00 in UET United Electronic on August 29, 2024 and sell it today you would earn a total of 28.00 from holding UET United Electronic or generate 35.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UET United Electronic vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| UET United Electronic |
| VARIOUS EATERIES |
UET United and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and VARIOUS EATERIES
The main advantage of trading using opposite UET United and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| UET United vs. Cisco Systems | UET United vs. Superior Plus Corp | UET United vs. SIVERS SEMICONDUCTORS AB | UET United vs. Talanx AG |
| VARIOUS EATERIES vs. STRAYER EDUCATION | VARIOUS EATERIES vs. GAMING FAC SA | VARIOUS EATERIES vs. GigaMedia | VARIOUS EATERIES vs. TAL Education Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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