Correlation Between Unimit Engineering and Winner Group
Can any of the company-specific risk be diversified away by investing in both Unimit Engineering and Winner Group 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 Unimit Engineering and Winner Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unimit Engineering Public and Winner Group Enterprise, you can compare the effects of market volatilities on Unimit Engineering and Winner Group 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 Unimit Engineering with a short position of Winner Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unimit Engineering and Winner Group.
Diversification Opportunities for Unimit Engineering and Winner Group
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Unimit and Winner is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Unimit Engineering Public and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise and Unimit Engineering 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 Unimit Engineering Public are associated (or correlated) with Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of Unimit Engineering i.e., Unimit Engineering and Winner Group go up and down completely randomly.
Pair Corralation between Unimit Engineering and Winner Group
Assuming the 90 days trading horizon Unimit Engineering is expected to generate 1.03 times less return on investment than Winner Group. In addition to that, Unimit Engineering is 1.0 times more volatile than Winner Group Enterprise. It trades about 0.08 of its total potential returns per unit of risk. Winner Group Enterprise is currently generating about 0.08 per unit of volatility. If you would invest 198.00 in Winner Group Enterprise on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Winner Group Enterprise or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Unimit Engineering Public vs. Winner Group Enterprise
Performance |
| Timeline |
| Unimit Engineering Public |
| Winner Group Enterprise |
Unimit Engineering and Winner Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unimit Engineering and Winner Group
The main advantage of trading using opposite Unimit Engineering and Winner Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unimit Engineering position performs unexpectedly, Winner Group 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 Winner Group will offset losses from the drop in Winner Group's long position.| Unimit Engineering vs. Union Petrochemical Public | Unimit Engineering vs. Ubis Public | Unimit Engineering vs. Unique Mining Services | Unimit Engineering vs. Eureka Design 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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