Correlation Between Intai Technology and Union Insurance
Can any of the company-specific risk be diversified away by investing in both Intai Technology and Union Insurance 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 Intai Technology and Union Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intai Technology and Union Insurance Co, you can compare the effects of market volatilities on Intai Technology and Union Insurance 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 Intai Technology with a short position of Union Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and Union Insurance.
Diversification Opportunities for Intai Technology and Union Insurance
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intai and Union is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and Union Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Insurance and Intai Technology 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 Intai Technology are associated (or correlated) with Union Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Insurance has no effect on the direction of Intai Technology i.e., Intai Technology and Union Insurance go up and down completely randomly.
Pair Corralation between Intai Technology and Union Insurance
Assuming the 90 days trading horizon Intai Technology is expected to under-perform the Union Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Intai Technology is 1.28 times less risky than Union Insurance. The stock trades about -0.13 of its potential returns per unit of risk. The Union Insurance Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,200 in Union Insurance Co on December 5, 2024 and sell it today you would earn a total of 180.00 from holding Union Insurance Co or generate 5.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intai Technology vs. Union Insurance Co
Performance |
Timeline |
Intai Technology |
Union Insurance |
Intai Technology and Union Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intai Technology and Union Insurance
The main advantage of trading using opposite Intai Technology and Union Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intai Technology position performs unexpectedly, Union Insurance 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 Union Insurance will offset losses from the drop in Union Insurance's long position.Intai Technology vs. Tehmag Foods | Intai Technology vs. An Shin Food Services | Intai Technology vs. Cleanaway Co | Intai Technology vs. Ligitek Electronics Co |
Union Insurance vs. Shinkong Insurance Co | Union Insurance vs. Central Reinsurance Corp | Union Insurance vs. Taiwan Fire Marine | Union Insurance vs. Taichung Commercial Bank |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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