Correlation Between United Microelectronics and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both United Microelectronics and ReWalk Robotics 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 United Microelectronics and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and ReWalk Robotics, you can compare the effects of market volatilities on United Microelectronics and ReWalk Robotics 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 United Microelectronics with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and ReWalk Robotics.
Diversification Opportunities for United Microelectronics and ReWalk Robotics
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and ReWalk is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and United Microelectronics 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 United Microelectronics are associated (or correlated) with ReWalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReWalk Robotics has no effect on the direction of United Microelectronics i.e., United Microelectronics and ReWalk Robotics go up and down completely randomly.
Pair Corralation between United Microelectronics and ReWalk Robotics
Considering the 90-day investment horizon United Microelectronics is expected to under-perform the ReWalk Robotics. But the stock apears to be less risky and, when comparing its historical volatility, United Microelectronics is 7.07 times less risky than ReWalk Robotics. The stock trades about -0.08 of its potential returns per unit of risk. The ReWalk Robotics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 163.00 in ReWalk Robotics on October 15, 2024 and sell it today you would earn a total of 27.00 from holding ReWalk Robotics or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Microelectronics vs. ReWalk Robotics
Performance |
| Timeline |
| United Microelectronics |
| ReWalk Robotics |
United Microelectronics and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and ReWalk Robotics
The main advantage of trading using opposite United Microelectronics and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics position performs unexpectedly, ReWalk Robotics 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 ReWalk Robotics will offset losses from the drop in ReWalk Robotics' long position.| United Microelectronics vs. Silicon Motion Technology | United Microelectronics vs. ASE Industrial Holding | United Microelectronics vs. ChipMOS Technologies | United Microelectronics vs. SemiLEDS |
| ReWalk Robotics vs. Hollywood Intermediate | ReWalk Robotics vs. Mattel Inc | ReWalk Robotics vs. Glorywin Entertainment Group | ReWalk Robotics vs. Genfit |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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