Correlation Between UET United and ASPEN PHARUNADR
Can any of the company-specific risk be diversified away by investing in both UET United and ASPEN PHARUNADR 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 ASPEN PHARUNADR 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 ASPEN PHARUNADR 1, you can compare the effects of market volatilities on UET United and ASPEN PHARUNADR 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 ASPEN PHARUNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and ASPEN PHARUNADR.
Diversification Opportunities for UET United and ASPEN PHARUNADR
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UET and ASPEN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic and ASPEN PHARUNADR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPEN PHARUNADR 1 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 ASPEN PHARUNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPEN PHARUNADR 1 has no effect on the direction of UET United i.e., UET United and ASPEN PHARUNADR go up and down completely randomly.
Pair Corralation between UET United and ASPEN PHARUNADR
Assuming the 90 days trading horizon UET United Electronic is expected to generate 3.17 times more return on investment than ASPEN PHARUNADR. However, UET United is 3.17 times more volatile than ASPEN PHARUNADR 1. It trades about 0.19 of its potential returns per unit of risk. ASPEN PHARUNADR 1 is currently generating about -0.09 per unit of risk. If you would invest 95.00 in UET United Electronic on October 12, 2024 and sell it today you would earn a total of 19.00 from holding UET United Electronic or generate 20.0% 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. ASPEN PHARUNADR 1
Performance |
| Timeline |
| UET United Electronic |
| ASPEN PHARUNADR 1 |
UET United and ASPEN PHARUNADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and ASPEN PHARUNADR
The main advantage of trading using opposite UET United and ASPEN PHARUNADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United position performs unexpectedly, ASPEN PHARUNADR 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 ASPEN PHARUNADR will offset losses from the drop in ASPEN PHARUNADR's long position.| UET United vs. Flutter Entertainment PLC | UET United vs. REMEDY ENTERTAINMENT OYJ | UET United vs. NIGHTINGALE HEALTH EO | UET United vs. YOOMA WELLNESS INC |
| ASPEN PHARUNADR vs. UET United Electronic | ASPEN PHARUNADR vs. Samsung Electronics Co | ASPEN PHARUNADR vs. Nanjing Panda Electronics | ASPEN PHARUNADR vs. LPKF Laser Electronics |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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