Correlation Between UET United and STMICROELECTRONICS
Can any of the company-specific risk be diversified away by investing in both UET United and STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS, you can compare the effects of market volatilities on UET United and STMICROELECTRONICS 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 STMICROELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and STMICROELECTRONICS.
Diversification Opportunities for UET United and STMICROELECTRONICS
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UET and STMICROELECTRONICS is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic and STMICROELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMICROELECTRONICS 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 STMICROELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMICROELECTRONICS has no effect on the direction of UET United i.e., UET United and STMICROELECTRONICS go up and down completely randomly.
Pair Corralation between UET United and STMICROELECTRONICS
Assuming the 90 days trading horizon UET United Electronic is expected to under-perform the STMICROELECTRONICS. But the stock apears to be less risky and, when comparing its historical volatility, UET United Electronic is 1.4 times less risky than STMICROELECTRONICS. The stock trades about -0.05 of its potential returns per unit of risk. The STMICROELECTRONICS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,380 in STMICROELECTRONICS on November 27, 2024 and sell it today you would earn a total of 284.00 from holding STMICROELECTRONICS or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UET United Electronic vs. STMICROELECTRONICS
Performance |
| Timeline |
| UET United Electronic |
| STMICROELECTRONICS |
UET United and STMICROELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and STMICROELECTRONICS
The main advantage of trading using opposite UET United and STMICROELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United position performs unexpectedly, STMICROELECTRONICS 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 STMICROELECTRONICS will offset losses from the drop in STMICROELECTRONICS's long position.| UET United vs. REINET INVESTMENTS SCA | UET United vs. PennyMac Mortgage Investment | UET United vs. MidCap Financial Investment | UET United vs. SEI Investments |
| STMICROELECTRONICS vs. DETALION GAMES SA | STMICROELECTRONICS vs. Platinum Investment Management | STMICROELECTRONICS vs. AGNC Investment Corp | STMICROELECTRONICS vs. CONTAGIOUS GAMING INC |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |