Correlation Between United Parcel and CT Global
Can any of the company-specific risk be diversified away by investing in both United Parcel 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 United Parcel and CT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Parcel Service and CT Global Managed, you can compare the effects of market volatilities on United Parcel 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 United Parcel with a short position of CT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parcel and CT Global.
Diversification Opportunities for United Parcel and CT Global
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and CMPG is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding United Parcel Service 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 United Parcel 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 Parcel Service 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 United Parcel i.e., United Parcel and CT Global go up and down completely randomly.
Pair Corralation between United Parcel and CT Global
Assuming the 90 days trading horizon United Parcel Service is expected to under-perform the CT Global. In addition to that, United Parcel is 2.73 times more volatile than CT Global Managed. It trades about -0.06 of its total potential returns per unit of risk. CT Global Managed is currently generating about 0.19 per unit of volatility. If you would invest 25,100 in CT Global Managed on August 26, 2024 and sell it today you would earn a total of 400.00 from holding CT Global Managed or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Parcel Service vs. CT Global Managed
Performance |
| Timeline |
| United Parcel Service |
| CT Global Managed |
United Parcel and CT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Parcel and CT Global
The main advantage of trading using opposite United Parcel and CT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parcel 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.| United Parcel vs. Samsung Electronics Co | United Parcel vs. Samsung Electronics Co | United Parcel vs. Hyundai Motor | United Parcel vs. Toyota Motor Corp |
| CT Global vs. Beeks Trading | CT Global vs. Zurich Insurance Group | CT Global vs. Tatton Asset Management | CT Global vs. The Mercantile Investment |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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