Correlation Between Winner Group and Unimit Engineering
Can any of the company-specific risk be diversified away by investing in both Winner Group 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 Winner Group and Unimit Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winner Group Enterprise and Unimit Engineering Public, you can compare the effects of market volatilities on Winner Group 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 Winner Group with a short position of Unimit Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winner Group and Unimit Engineering.
Diversification Opportunities for Winner Group and Unimit Engineering
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Winner and Unimit is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Winner Group Enterprise 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 Winner Group 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 Winner Group Enterprise 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 Winner Group i.e., Winner Group and Unimit Engineering go up and down completely randomly.
Pair Corralation between Winner Group and Unimit Engineering
Assuming the 90 days trading horizon Winner Group Enterprise is expected to generate 0.67 times more return on investment than Unimit Engineering. However, Winner Group Enterprise is 1.5 times less risky than Unimit Engineering. It trades about -0.04 of its potential returns per unit of risk. Unimit Engineering Public is currently generating about -0.36 per unit of risk. If you would invest 208.00 in Winner Group Enterprise on September 1, 2024 and sell it today you would lose (2.00) from holding Winner Group Enterprise or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Winner Group Enterprise vs. Unimit Engineering Public
Performance |
| Timeline |
| Winner Group Enterprise |
| Unimit Engineering Public |
Winner Group and Unimit Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winner Group and Unimit Engineering
The main advantage of trading using opposite Winner Group and Unimit Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winner Group 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.| Winner Group vs. Mega Lifesciences Public | Winner Group vs. Com7 PCL | Winner Group vs. Thai Union Group | Winner Group vs. Jay Mart Public |
| Unimit Engineering vs. Union Petrochemical Public | Unimit Engineering vs. Ubis Public | Unimit Engineering vs. Unique Mining Services | Unimit Engineering vs. Eureka Design Public |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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