Correlation Between ANTA Sports and United Microelectronics

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

By analyzing existing cross correlation between ANTA Sports Products and United Microelectronics, you can compare the effects of market volatilities on ANTA Sports and United Microelectronics 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 ANTA Sports with a short position of United Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA Sports and United Microelectronics.

Diversification Opportunities for ANTA Sports and United Microelectronics

0.03

Correlation Coefficient

ANTA Sports  United Microelectronics

Significant diversification

The 3 months correlation between ANTA and United is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ANTA Sports Products and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics and ANTA Sports 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 ANTA Sports Products are associated (or correlated) with United Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Microelectronics has no effect on the direction of ANTA Sports i.e., ANTA Sports and United Microelectronics go up and down completely randomly.

Pair Corralation between ANTA Sports and United Microelectronics

Assuming the 90 days horizon ANTA Sports Products is expected to generate 1.24 times more return on investment than United Microelectronics. However, ANTA Sports is 1.24 times more volatile than United Microelectronics. It trades about -0.04 of its potential returns per unit of risk. United Microelectronics is currently generating about -0.37 per unit of risk. If you would invest  28,896  in ANTA Sports Products on May 7, 2025 and sell it today you would lose (474.00) from holding ANTA Sports Products or give up 1.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ANTA Sports Products  vs.  United Microelectronics

ANTA Sports Products

Risk-Adjusted Performance

Very Weak

Over the last 90 days ANTA Sports Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, ANTA Sports is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

United Microelectronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days United Microelectronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, United Microelectronics is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ANTA Sports and United Microelectronics

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

The idea behind ANTA Sports Products and United Microelectronics 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.