Correlation Between Uniper SE and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Uniper SE and XLMedia PLC 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 XLMedia PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and XLMedia PLC, you can compare the effects of market volatilities on Uniper SE and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and XLMedia PLC.
Diversification Opportunities for Uniper SE and XLMedia PLC
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uniper and XLMedia is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Uniper SE i.e., Uniper SE and XLMedia PLC go up and down completely randomly.
Pair Corralation between Uniper SE and XLMedia PLC
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the XLMedia PLC. But the stock apears to be less risky and, when comparing its historical volatility, Uniper SE is 1.12 times less risky than XLMedia PLC. The stock trades about -0.03 of its potential returns per unit of risk. The XLMedia PLC is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,250 in XLMedia PLC on September 3, 2024 and sell it today you would lose (60.00) from holding XLMedia PLC or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniper SE vs. XLMedia PLC
Performance |
| Timeline |
| Uniper SE |
| XLMedia PLC |
Uniper SE and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and XLMedia PLC
The main advantage of trading using opposite Uniper SE and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| Uniper SE vs. Bytes Technology | Uniper SE vs. Livermore Investments Group | Uniper SE vs. FC Investment Trust | Uniper SE vs. Universal Display Corp |
| XLMedia PLC vs. Intuitive Investments Group | XLMedia PLC vs. European Metals Holdings | XLMedia PLC vs. Athelney Trust plc | XLMedia PLC vs. Invesco Health Care |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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