Correlation Between United Microelectronics and Artisan Partners

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

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

Diversification Opportunities for United Microelectronics and Artisan Partners

0.54

Correlation Coefficient

United Microelectronics  Artisan Partners

Very weak diversification

The 3 months correlation between United and Artisan is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding United Microelectronics and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset 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 Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of United Microelectronics i.e., United Microelectronics and Artisan Partners go up and down completely randomly.

Pair Corralation between United Microelectronics and Artisan Partners

Considering the 90-day investment horizon United Microelectronics is expected to under-perform the Artisan Partners. In addition to that, United Microelectronics is 1.1 times more volatile than Artisan Partners Asset. It trades about -0.02 of its total potential returns per unit of risk. Artisan Partners Asset is currently generating about 0.18 per unit of volatility. If you would invest  3,929  in Artisan Partners Asset on May 7, 2025 and sell it today you would earn a total of  731.00  from holding Artisan Partners Asset or generate 18.61% return on investment over 90 days.

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

United Microelectronics  vs.  Artisan Partners Asset

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.

Artisan Partners Asset

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Partners Asset are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Artisan Partners displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with United Microelectronics and Artisan Partners

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

The idea behind United Microelectronics and Artisan Partners Asset 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.