Correlation Between UMC Electronics and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both UMC Electronics and ANTA SPORTS 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 UMC Electronics and ANTA SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UMC Electronics Co and ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on UMC Electronics and ANTA SPORTS 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 UMC Electronics with a short position of ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UMC Electronics and ANTA SPORTS.
Diversification Opportunities for UMC Electronics and ANTA SPORTS
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between UMC and ANTA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding UMC Electronics Co and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT and UMC 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 UMC Electronics Co are associated (or correlated) with ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of UMC Electronics i.e., UMC Electronics and ANTA SPORTS go up and down completely randomly.
Pair Corralation between UMC Electronics and ANTA SPORTS
Assuming the 90 days horizon UMC Electronics Co is expected to under-perform the ANTA SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, UMC Electronics Co is 1.11 times less risky than ANTA SPORTS. The stock trades about -0.03 of its potential returns per unit of risk. The ANTA SPORTS PRODUCT is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 772.00 in ANTA SPORTS PRODUCT on September 3, 2024 and sell it today you would earn a total of 155.00 from holding ANTA SPORTS PRODUCT or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UMC Electronics Co vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| UMC Electronics |
| ANTA SPORTS PRODUCT |
UMC Electronics and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UMC Electronics and ANTA SPORTS
The main advantage of trading using opposite UMC Electronics and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UMC Electronics position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| UMC Electronics vs. ASURE SOFTWARE | UMC Electronics vs. Axway Software SA | UMC Electronics vs. Micron Technology | UMC Electronics vs. AXWAY SOFTWARE EO |
| ANTA SPORTS vs. PRECISION DRILLING P | ANTA SPORTS vs. JD SPORTS FASH | ANTA SPORTS vs. Columbia Sportswear | ANTA SPORTS vs. The Hanover Insurance |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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