Correlation Between Applied UV and MasterBrand
Can any of the company-specific risk be diversified away by investing in both Applied UV and MasterBrand 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 Applied UV and MasterBrand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied UV Preferred and MasterBrand, you can compare the effects of market volatilities on Applied UV and MasterBrand 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 Applied UV with a short position of MasterBrand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied UV and MasterBrand.
Diversification Opportunities for Applied UV and MasterBrand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and MasterBrand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied UV Preferred and MasterBrand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MasterBrand and Applied UV 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 Applied UV Preferred are associated (or correlated) with MasterBrand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MasterBrand has no effect on the direction of Applied UV i.e., Applied UV and MasterBrand go up and down completely randomly.
Pair Corralation between Applied UV and MasterBrand
If you would invest 1,426 in MasterBrand on October 25, 2024 and sell it today you would earn a total of 292.00 from holding MasterBrand or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Applied UV Preferred vs. MasterBrand
Performance |
| Timeline |
| Applied UV Preferred |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MasterBrand |
Applied UV and MasterBrand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied UV and MasterBrand
The main advantage of trading using opposite Applied UV and MasterBrand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied UV position performs unexpectedly, MasterBrand 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 MasterBrand will offset losses from the drop in MasterBrand's long position.| Applied UV vs. FAT Brands | Applied UV vs. Cadiz Depositary Shares | Applied UV vs. Atlanticus Holdings Corp | Applied UV vs. Presidio Property Trust |
| MasterBrand vs. Bassett Furniture Industries | MasterBrand vs. Ethan Allen Interiors | MasterBrand vs. Natuzzi SpA | MasterBrand vs. Flexsteel Industries |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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