Correlation Between Systemair and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Systemair and Uniper SE 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 Systemair and Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Uniper SE, you can compare the effects of market volatilities on Systemair and Uniper SE 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 Systemair with a short position of Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Uniper SE.
Diversification Opportunities for Systemair and Uniper SE
Very good diversification
The 3 months correlation between Systemair and Uniper is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE and Systemair 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 Systemair AB are associated (or correlated) with Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Systemair i.e., Systemair and Uniper SE go up and down completely randomly.
Pair Corralation between Systemair and Uniper SE
Assuming the 90 days trading horizon Systemair AB is expected to generate 0.55 times more return on investment than Uniper SE. However, Systemair AB is 1.83 times less risky than Uniper SE. It trades about 0.02 of its potential returns per unit of risk. Uniper SE is currently generating about -0.02 per unit of risk. If you would invest 8,448 in Systemair AB on September 25, 2024 and sell it today you would earn a total of 482.00 from holding Systemair AB or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Systemair AB vs. Uniper SE
Performance |
| Timeline |
| Systemair AB |
| Uniper SE |
Systemair and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Uniper SE
The main advantage of trading using opposite Systemair and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Systemair vs. Blackrock World Mining | Systemair vs. Jupiter Fund Management | Systemair vs. Fulcrum Metals PLC | Systemair vs. Impax Asset Management |
| Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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