Correlation Between UNISEM and Yura Tech

Can any of the company-specific risk be diversified away by investing in both UNISEM and Yura Tech 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 UNISEM and Yura Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UNISEM Co and Yura Tech Co, you can compare the effects of market volatilities on UNISEM and Yura Tech 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 UNISEM with a short position of Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and Yura Tech.

Diversification Opportunities for UNISEM and Yura Tech

0.89

Correlation Coefficient

UNISEM  Yura Tech

Very poor diversification

The 3 months correlation between UNISEM and Yura is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech and UNISEM 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 UNISEM Co are associated (or correlated) with Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of UNISEM i.e., UNISEM and Yura Tech go up and down completely randomly.

Pair Corralation between UNISEM and Yura Tech

Assuming the 90 days trading horizon UNISEM Co is expected to under-perform the Yura Tech. In addition to that, UNISEM is 2.81 times more volatile than Yura Tech Co. It trades about -0.08 of its total potential returns per unit of risk. Yura Tech Co is currently generating about -0.05 per unit of volatility. If you would invest  635,000  in Yura Tech Co on September 4, 2024 and sell it today you would lose (25,000) from holding Yura Tech Co or give up 3.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.31%
Values	Daily Returns

UNISEM Co  vs.  Yura Tech Co

UNISEM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNISEM Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Yura Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yura Tech Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Yura Tech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with UNISEM and Yura Tech

The main advantage of trading using opposite UNISEM and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.

The idea behind UNISEM Co and Yura Tech Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.