Correlation Between ANSYS and Universal Display
Can any of the company-specific risk be diversified away by investing in both ANSYS and Universal Display 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 ANSYS and Universal Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANSYS Inc and Universal Display, you can compare the effects of market volatilities on ANSYS and Universal Display 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 ANSYS with a short position of Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANSYS and Universal Display.
Diversification Opportunities for ANSYS and Universal Display
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANSYS and Universal is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ANSYS Inc and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display and ANSYS 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 ANSYS Inc are associated (or correlated) with Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of ANSYS i.e., ANSYS and Universal Display go up and down completely randomly.
Pair Corralation between ANSYS and Universal Display
Assuming the 90 days horizon ANSYS Inc is expected to generate 0.86 times more return on investment than Universal Display. However, ANSYS Inc is 1.17 times less risky than Universal Display. It trades about 0.26 of its potential returns per unit of risk. Universal Display is currently generating about -0.09 per unit of risk. If you would invest 29,850 in ANSYS Inc on September 5, 2024 and sell it today you would earn a total of 3,260 from holding ANSYS Inc or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANSYS Inc vs. Universal Display
Performance |
| Timeline |
| ANSYS Inc |
| Universal Display |
ANSYS and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANSYS and Universal Display
The main advantage of trading using opposite ANSYS and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANSYS position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| ANSYS vs. Universal Display | ANSYS vs. National Retail Properties | ANSYS vs. PLAYSTUDIOS A DL 0001 | ANSYS vs. PLAYTIKA HOLDING DL 01 |
| Universal Display vs. ASML Holding NV | Universal Display vs. Tokyo Electron Limited | Universal Display vs. Enphase Energy | Universal Display vs. ASM International NV |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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