Correlation Between USWE SPORTS and Spacetalk
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and Spacetalk 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 Spacetalk 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 Spacetalk, you can compare the effects of market volatilities on USWE SPORTS and Spacetalk 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 Spacetalk. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and Spacetalk.
Diversification Opportunities for USWE SPORTS and Spacetalk
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between USWE and Spacetalk is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and Spacetalk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spacetalk 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 Spacetalk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spacetalk has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and Spacetalk go up and down completely randomly.
Pair Corralation between USWE SPORTS and Spacetalk
Assuming the 90 days horizon USWE SPORTS AB is expected to under-perform the Spacetalk. But the stock apears to be less risky and, when comparing its historical volatility, USWE SPORTS AB is 11.57 times less risky than Spacetalk. The stock trades about 0.0 of its potential returns per unit of risk. The Spacetalk is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Spacetalk on October 19, 2024 and sell it today you would lose (6.60) from holding Spacetalk or give up 44.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. Spacetalk
Performance |
| Timeline |
| USWE SPORTS AB |
| Spacetalk |
USWE SPORTS and Spacetalk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and Spacetalk
The main advantage of trading using opposite USWE SPORTS and Spacetalk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, Spacetalk 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 Spacetalk will offset losses from the drop in Spacetalk's long position.| USWE SPORTS vs. Cincinnati Financial Corp | USWE SPORTS vs. UNIQA INSURANCE GR | USWE SPORTS vs. STORE ELECTRONIC | USWE SPORTS vs. LPKF Laser Electronics |
| Spacetalk vs. Fukuyama Transporting Co | Spacetalk vs. CHINA TONTINE WINES | Spacetalk vs. TITANIUM TRANSPORTGROUP | Spacetalk vs. USWE SPORTS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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