Correlation Between USWE SPORTS and ANDREW PELLER
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and ANDREW PELLER 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 USWE SPORTS and ANDREW PELLER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and ANDREW PELLER LTD, you can compare the effects of market volatilities on USWE SPORTS and ANDREW PELLER 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 USWE SPORTS with a short position of ANDREW PELLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and ANDREW PELLER.
Diversification Opportunities for USWE SPORTS and ANDREW PELLER
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USWE and ANDREW is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and ANDREW PELLER LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANDREW PELLER LTD and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with ANDREW PELLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANDREW PELLER LTD has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and ANDREW PELLER go up and down completely randomly.
Pair Corralation between USWE SPORTS and ANDREW PELLER
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 1.13 times more return on investment than ANDREW PELLER. However, USWE SPORTS is 1.13 times more volatile than ANDREW PELLER LTD. It trades about 0.11 of its potential returns per unit of risk. ANDREW PELLER LTD is currently generating about 0.12 per unit of risk. If you would invest 57.00 in USWE SPORTS AB on December 4, 2024 and sell it today you would earn a total of 24.00 from holding USWE SPORTS AB or generate 42.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. ANDREW PELLER LTD
Performance |
| Timeline |
| USWE SPORTS AB |
| ANDREW PELLER LTD |
USWE SPORTS and ANDREW PELLER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and ANDREW PELLER
The main advantage of trading using opposite USWE SPORTS and ANDREW PELLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, ANDREW PELLER 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 ANDREW PELLER will offset losses from the drop in ANDREW PELLER's long position.| USWE SPORTS vs. PEPTONIC MEDICAL | USWE SPORTS vs. Altair Engineering | USWE SPORTS vs. ONWARD MEDICAL BV | USWE SPORTS vs. NORWEGIAN AIR SHUT |
| ANDREW PELLER vs. Tower One Wireless | ANDREW PELLER vs. Universal Entertainment | ANDREW PELLER vs. SBA Communications Corp | ANDREW PELLER vs. Geely Automobile Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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