Correlation Between Coor Service and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Coor Service 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 Coor Service and Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Uniper SE, you can compare the effects of market volatilities on Coor Service 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 Coor Service with a short position of Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Uniper SE.
Diversification Opportunities for Coor Service and Uniper SE
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coor and Uniper is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE and Coor Service 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 Coor Service Management 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 Coor Service i.e., Coor Service and Uniper SE go up and down completely randomly.
Pair Corralation between Coor Service and Uniper SE
Assuming the 90 days trading horizon Coor Service Management is expected to under-perform the Uniper SE. But the stock apears to be less risky and, when comparing its historical volatility, Coor Service Management is 1.71 times less risky than Uniper SE. The stock trades about -0.03 of its potential returns per unit of risk. The Uniper SE is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,858 in Uniper SE on September 12, 2024 and sell it today you would lose (1,660) from holding Uniper SE or give up 28.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Coor Service Management vs. Uniper SE
Performance |
| Timeline |
| Coor Service Management |
| Uniper SE |
Coor Service and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and Uniper SE
The main advantage of trading using opposite Coor Service and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service 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.| Coor Service vs. Hong Kong Land | Coor Service vs. Neometals | Coor Service vs. Fidelity Sustainable USD | Coor Service vs. Surgical Science Sweden |
| Uniper SE vs. Hong Kong Land | Uniper SE vs. Neometals | Uniper SE vs. Coor Service Management | Uniper SE vs. Fidelity Sustainable USD |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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