Correlation Between Ubis Public and Unimit Engineering
Can any of the company-specific risk be diversified away by investing in both Ubis Public and Unimit Engineering 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 Ubis Public and Unimit Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubis Public and Unimit Engineering Public, you can compare the effects of market volatilities on Ubis Public and Unimit Engineering 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 Ubis Public with a short position of Unimit Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubis Public and Unimit Engineering.
Diversification Opportunities for Ubis Public and Unimit Engineering
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ubis and Unimit is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ubis Public and Unimit Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimit Engineering Public and Ubis Public 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 Ubis Public are associated (or correlated) with Unimit Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimit Engineering Public has no effect on the direction of Ubis Public i.e., Ubis Public and Unimit Engineering go up and down completely randomly.
Pair Corralation between Ubis Public and Unimit Engineering
Assuming the 90 days trading horizon Ubis Public is expected to generate 1.0 times more return on investment than Unimit Engineering. However, Ubis Public is 1.0 times more volatile than Unimit Engineering Public. It trades about 0.07 of its potential returns per unit of risk. Unimit Engineering Public is currently generating about 0.07 per unit of risk. If you would invest 198.00 in Ubis Public on September 1, 2024 and sell it today you would lose (28.00) from holding Ubis Public or give up 14.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubis Public vs. Unimit Engineering Public
Performance |
| Timeline |
| Ubis Public |
| Unimit Engineering Public |
Ubis Public and Unimit Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubis Public and Unimit Engineering
The main advantage of trading using opposite Ubis Public and Unimit Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubis Public position performs unexpectedly, Unimit Engineering 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 Unimit Engineering will offset losses from the drop in Unimit Engineering's long position.| Ubis Public vs. PTT Public | Ubis Public vs. The Siam Commercial | Ubis Public vs. Airports of Thailand | Ubis Public vs. CP ALL Public |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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