Correlation Between American Superconductor and Ushio
Can any of the company-specific risk be diversified away by investing in both American Superconductor and Ushio 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 American Superconductor and Ushio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Superconductor and Ushio Inc, you can compare the effects of market volatilities on American Superconductor and Ushio 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 American Superconductor with a short position of Ushio. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Superconductor and Ushio.
Diversification Opportunities for American Superconductor and Ushio
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and Ushio is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding American Superconductor and Ushio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ushio Inc and American Superconductor 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 American Superconductor are associated (or correlated) with Ushio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ushio Inc has no effect on the direction of American Superconductor i.e., American Superconductor and Ushio go up and down completely randomly.
Pair Corralation between American Superconductor and Ushio
Given the investment horizon of 90 days American Superconductor is expected to generate 2.99 times more return on investment than Ushio. However, American Superconductor is 2.99 times more volatile than Ushio Inc. It trades about 0.09 of its potential returns per unit of risk. Ushio Inc is currently generating about 0.03 per unit of risk. If you would invest 1,080 in American Superconductor on September 12, 2024 and sell it today you would earn a total of 1,624 from holding American Superconductor or generate 150.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 62.9% |
| Values | Daily Returns |
American Superconductor vs. Ushio Inc
Performance |
| Timeline |
| American Superconductor |
| Ushio Inc |
American Superconductor and Ushio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Superconductor and Ushio
The main advantage of trading using opposite American Superconductor and Ushio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Superconductor position performs unexpectedly, Ushio 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 Ushio will offset losses from the drop in Ushio's long position.| American Superconductor vs. Nel ASA | American Superconductor vs. Graham | American Superconductor vs. Watts Water Technologies | American Superconductor vs. CVD Equipment |
| Ushio vs. Xinjiang Goldwind Science | Ushio vs. American Superconductor | Ushio vs. Cummins | Ushio vs. Aquagold International |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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