Correlation Between Uniper SE and Global Net
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Global Net 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 Uniper SE and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Global Net Lease, you can compare the effects of market volatilities on Uniper SE and Global Net 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 Uniper SE with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Global Net.
Diversification Opportunities for Uniper SE and Global Net
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uniper and Global is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Uniper SE 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 Uniper SE are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Uniper SE i.e., Uniper SE and Global Net go up and down completely randomly.
Pair Corralation between Uniper SE and Global Net
Assuming the 90 days trading horizon Uniper SE is expected to generate 1.56 times more return on investment than Global Net. However, Uniper SE is 1.56 times more volatile than Global Net Lease. It trades about 0.13 of its potential returns per unit of risk. Global Net Lease is currently generating about -0.02 per unit of risk. If you would invest 4,131 in Uniper SE on October 14, 2024 and sell it today you would earn a total of 216.00 from holding Uniper SE or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Uniper SE vs. Global Net Lease
Performance |
| Timeline |
| Uniper SE |
| Global Net Lease |
Uniper SE and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Global Net
The main advantage of trading using opposite Uniper SE and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Uniper SE vs. Aeorema Communications Plc | Uniper SE vs. Eco Animal Health | Uniper SE vs. Cairo Communication SpA | Uniper SE vs. Induction Healthcare Group |
| Global Net vs. Zinc Media Group | Global Net vs. Guild Esports Plc | Global Net vs. Liberty Media Corp | Global Net vs. Dalata Hotel Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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