Correlation Between UNIPHAR PLC and Ambea AB
Can any of the company-specific risk be diversified away by investing in both UNIPHAR PLC and Ambea AB 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 UNIPHAR PLC and Ambea AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIPHAR PLC EO and Ambea AB, you can compare the effects of market volatilities on UNIPHAR PLC and Ambea AB 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 UNIPHAR PLC with a short position of Ambea AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIPHAR PLC and Ambea AB.
Diversification Opportunities for UNIPHAR PLC and Ambea AB
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIPHAR and Ambea is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding UNIPHAR PLC EO and Ambea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambea AB and UNIPHAR PLC 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 UNIPHAR PLC EO are associated (or correlated) with Ambea AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambea AB has no effect on the direction of UNIPHAR PLC i.e., UNIPHAR PLC and Ambea AB go up and down completely randomly.
Pair Corralation between UNIPHAR PLC and Ambea AB
Assuming the 90 days horizon UNIPHAR PLC EO is expected to under-perform the Ambea AB. In addition to that, UNIPHAR PLC is 1.18 times more volatile than Ambea AB. It trades about -0.14 of its total potential returns per unit of risk. Ambea AB is currently generating about 0.05 per unit of volatility. If you would invest 837.00 in Ambea AB on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Ambea AB or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIPHAR PLC EO vs. Ambea AB
Performance |
| Timeline |
| UNIPHAR PLC EO |
| Ambea AB |
UNIPHAR PLC and Ambea AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIPHAR PLC and Ambea AB
The main advantage of trading using opposite UNIPHAR PLC and Ambea AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIPHAR PLC position performs unexpectedly, Ambea AB 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 Ambea AB will offset losses from the drop in Ambea AB's long position.| UNIPHAR PLC vs. JD HEALTH INTL | UNIPHAR PLC vs. Fresenius SE Co | UNIPHAR PLC vs. Fresenius Medical Care | UNIPHAR PLC vs. Sonic Healthcare Limited |
| Ambea AB vs. CHIBA BANK | Ambea AB vs. Carsales | Ambea AB vs. The Hanover Insurance | Ambea AB vs. Webster Financial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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