Correlation Between United Microelectronics and THERMO
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By analyzing existing cross correlation between United Microelectronics and THERMO FISHER SCIENTIFIC, you can compare the effects of market volatilities on United Microelectronics and THERMO 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 THERMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and THERMO.
Diversification Opportunities for United Microelectronics and THERMO
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and THERMO is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and THERMO FISHER SCIENTIFIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THERMO FISHER SCIENTIFIC 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 THERMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THERMO FISHER SCIENTIFIC has no effect on the direction of United Microelectronics i.e., United Microelectronics and THERMO go up and down completely randomly.
Pair Corralation between United Microelectronics and THERMO
Considering the 90-day investment horizon United Microelectronics is expected to under-perform the THERMO. But the stock apears to be less risky and, when comparing its historical volatility, United Microelectronics is 1.42 times less risky than THERMO. The stock trades about -0.22 of its potential returns per unit of risk. The THERMO FISHER SCIENTIFIC is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 9,599 in THERMO FISHER SCIENTIFIC on October 23, 2024 and sell it today you would earn a total of 804.00 from holding THERMO FISHER SCIENTIFIC or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.22% |
| Values | Daily Returns |
United Microelectronics vs. THERMO FISHER SCIENTIFIC
Performance |
| Timeline |
| United Microelectronics |
| THERMO FISHER SCIENTIFIC |
United Microelectronics and THERMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Microelectronics and THERMO
The main advantage of trading using opposite United Microelectronics and THERMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics position performs unexpectedly, THERMO 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 THERMO will offset losses from the drop in THERMO's long position.| United Microelectronics vs. Silicon Motion Technology | United Microelectronics vs. ASE Industrial Holding | United Microelectronics vs. ChipMOS Technologies | United Microelectronics vs. SemiLEDS |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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