Correlation Between United Airlines and Uniper SE
Can any of the company-specific risk be diversified away by investing in both United Airlines 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 United Airlines and Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Airlines Holdings and Uniper SE, you can compare the effects of market volatilities on United Airlines 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 United Airlines with a short position of Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Uniper SE.
Diversification Opportunities for United Airlines and Uniper SE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Uniper is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE and United Airlines 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 Airlines Holdings 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 United Airlines i.e., United Airlines and Uniper SE go up and down completely randomly.
Pair Corralation between United Airlines and Uniper SE
Assuming the 90 days trading horizon United Airlines Holdings is expected to generate 0.59 times more return on investment than Uniper SE. However, United Airlines Holdings is 1.68 times less risky than Uniper SE. It trades about 0.08 of its potential returns per unit of risk. Uniper SE is currently generating about 0.01 per unit of risk. If you would invest 4,111 in United Airlines Holdings on September 3, 2024 and sell it today you would earn a total of 5,529 from holding United Airlines Holdings or generate 134.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
United Airlines Holdings vs. Uniper SE
Performance |
| Timeline |
| United Airlines Holdings |
| Uniper SE |
United Airlines and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Uniper SE
The main advantage of trading using opposite United Airlines and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines 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.| United Airlines vs. Catalyst Media Group | United Airlines vs. CATLIN GROUP | United Airlines vs. Magnora ASA | United Airlines vs. RTW Venture Fund |
| Uniper SE vs. Bytes Technology | Uniper SE vs. Livermore Investments Group | Uniper SE vs. FC Investment Trust | Uniper SE vs. Universal Display Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |