Correlation Between United Microelectronics and Corus Entertainment
Can any of the company-specific risk be diversified away by investing in both United Microelectronics and Corus Entertainment 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 Corus Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Microelectronics and Corus Entertainment, you can compare the effects of market volatilities on United Microelectronics and Corus Entertainment 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 Corus Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Microelectronics and Corus Entertainment.
Diversification Opportunities for United Microelectronics and Corus Entertainment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Corus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and Corus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corus Entertainment 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 Corus Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corus Entertainment has no effect on the direction of United Microelectronics i.e., United Microelectronics and Corus Entertainment go up and down completely randomly.
Pair Corralation between United Microelectronics and Corus Entertainment
If you would invest 664.00 in United Microelectronics on December 27, 2024 and sell it today you would earn a total of 0.00 from holding United Microelectronics or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
United Microelectronics vs. Corus Entertainment
Performance |
Timeline |
United Microelectronics |
Corus Entertainment |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
United Microelectronics and Corus Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Microelectronics and Corus Entertainment
The main advantage of trading using opposite United Microelectronics and Corus Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Microelectronics position performs unexpectedly, Corus Entertainment 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 Corus Entertainment will offset losses from the drop in Corus Entertainment'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 CEOs Directory module to screen CEOs from public companies around the world.
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