Correlation Between Universal Display and CT Global
Can any of the company-specific risk be diversified away by investing in both Universal Display and CT Global 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 Universal Display and CT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Display Corp and CT Global Managed, you can compare the effects of market volatilities on Universal Display and CT Global 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 Universal Display with a short position of CT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and CT Global.
Diversification Opportunities for Universal Display and CT Global
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Universal and CMPG is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display Corp and CT Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Global Managed and Universal Display 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 Universal Display Corp are associated (or correlated) with CT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Global Managed has no effect on the direction of Universal Display i.e., Universal Display and CT Global go up and down completely randomly.
Pair Corralation between Universal Display and CT Global
Assuming the 90 days trading horizon Universal Display Corp is expected to under-perform the CT Global. In addition to that, Universal Display is 9.61 times more volatile than CT Global Managed. It trades about -0.02 of its total potential returns per unit of risk. CT Global Managed is currently generating about 0.1 per unit of volatility. If you would invest 25,800 in CT Global Managed on November 3, 2024 and sell it today you would earn a total of 900.00 from holding CT Global Managed or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Universal Display Corp vs. CT Global Managed
Performance |
| Timeline |
| Universal Display Corp |
| CT Global Managed |
Universal Display and CT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Display and CT Global
The main advantage of trading using opposite Universal Display and CT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display position performs unexpectedly, CT Global 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 CT Global will offset losses from the drop in CT Global's long position.| Universal Display vs. Cognizant Technology Solutions | Universal Display vs. PPHE Hotel Group | Universal Display vs. Bytes Technology | Universal Display vs. Spotify Technology SA |
| CT Global vs. Spotify Technology SA | CT Global vs. DXC Technology Co | CT Global vs. Hochschild Mining plc | CT Global vs. Take Two Interactive Software |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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