Correlation Between Meiko Electronics and UET United
Can any of the company-specific risk be diversified away by investing in both Meiko Electronics and UET United 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 Meiko Electronics and UET United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiko Electronics Co and UET United Electronic, you can compare the effects of market volatilities on Meiko Electronics and UET United 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 Meiko Electronics with a short position of UET United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiko Electronics and UET United.
Diversification Opportunities for Meiko Electronics and UET United
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Meiko and UET is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co and UET United Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UET United Electronic and Meiko Electronics 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 Meiko Electronics Co are associated (or correlated) with UET United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UET United Electronic has no effect on the direction of Meiko Electronics i.e., Meiko Electronics and UET United go up and down completely randomly.
Pair Corralation between Meiko Electronics and UET United
Assuming the 90 days horizon Meiko Electronics Co is expected to generate 0.76 times more return on investment than UET United. However, Meiko Electronics Co is 1.31 times less risky than UET United. It trades about 0.52 of its potential returns per unit of risk. UET United Electronic is currently generating about 0.16 per unit of risk. If you would invest 3,400 in Meiko Electronics Co on September 3, 2024 and sell it today you would earn a total of 2,300 from holding Meiko Electronics Co or generate 67.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiko Electronics Co vs. UET United Electronic
Performance |
| Timeline |
| Meiko Electronics |
| UET United Electronic |
Meiko Electronics and UET United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiko Electronics and UET United
The main advantage of trading using opposite Meiko Electronics and UET United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics position performs unexpectedly, UET United 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 UET United will offset losses from the drop in UET United's long position.| Meiko Electronics vs. KCE EL PCL | Meiko Electronics vs. Benchmark Electronics | Meiko Electronics vs. Superior Plus Corp | Meiko Electronics vs. NMI Holdings |
| UET United vs. Cisco Systems | UET United vs. Cisco Systems | UET United vs. Motorola Solutions | UET United vs. Nokia |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |