Correlation Between Phreesia and United Microelectronics

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

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

Diversification Opportunities for Phreesia and United Microelectronics

0.5

Correlation Coefficient

Phreesia  United Microelectronics

Very weak diversification

The 3 months correlation between Phreesia and United is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Phreesia and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics and Phreesia 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 Phreesia 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 Phreesia i.e., Phreesia and United Microelectronics go up and down completely randomly.

Pair Corralation between Phreesia and United Microelectronics

Considering the 90-day investment horizon Phreesia is expected to generate 1.45 times more return on investment than United Microelectronics. However, Phreesia is 1.45 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 -0.01 per unit of risk. If you would invest  2,524  in Phreesia on May 4, 2025 and sell it today you would earn a total of  110.00  from holding Phreesia or generate 4.36% return on investment over 90 days.

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

Phreesia  vs.  United Microelectronics

Phreesia

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Phreesia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical indicators, Phreesia may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 Phreesia and United Microelectronics

The main advantage of trading using opposite Phreesia and United Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phreesia 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 Phreesia 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.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.