Correlation Between WinWay Technology and Global Unichip
Can any of the company-specific risk be diversified away by investing in both WinWay Technology and Global Unichip 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 WinWay Technology and Global Unichip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinWay Technology Co and Global Unichip Corp, you can compare the effects of market volatilities on WinWay Technology and Global Unichip 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 WinWay Technology with a short position of Global Unichip. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinWay Technology and Global Unichip.
Diversification Opportunities for WinWay Technology and Global Unichip
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WinWay and Global is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding WinWay Technology Co and Global Unichip Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Unichip Corp and WinWay 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 WinWay Technology Co are associated (or correlated) with Global Unichip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Unichip Corp has no effect on the direction of WinWay Technology i.e., WinWay Technology and Global Unichip go up and down completely randomly.
Pair Corralation between WinWay Technology and Global Unichip
Assuming the 90 days trading horizon WinWay Technology Co is expected to under-perform the Global Unichip. In addition to that, WinWay Technology is 1.1 times more volatile than Global Unichip Corp. It trades about -0.25 of its total potential returns per unit of risk. Global Unichip Corp is currently generating about 0.1 per unit of volatility. If you would invest 127,500 in Global Unichip Corp on September 24, 2024 and sell it today you would earn a total of 7,500 from holding Global Unichip Corp or generate 5.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
WinWay Technology Co vs. Global Unichip Corp
Performance |
Timeline |
WinWay Technology |
Global Unichip Corp |
WinWay Technology and Global Unichip Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WinWay Technology and Global Unichip
The main advantage of trading using opposite WinWay Technology and Global Unichip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinWay Technology position performs unexpectedly, Global Unichip 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 Global Unichip will offset losses from the drop in Global Unichip's long position.WinWay Technology vs. Global Unichip Corp | WinWay Technology vs. Alchip Technologies | WinWay Technology vs. Andes Technology Corp | WinWay Technology vs. Asmedia Technology |
Global Unichip vs. Century Wind Power | Global Unichip vs. Green World Fintech | Global Unichip vs. Ingentec | Global Unichip vs. Chaheng Precision Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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