Correlation Between Bollor SE and United Parcel
Can any of the company-specific risk be diversified away by investing in both Bollor SE and United Parcel 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 Bollor SE and United Parcel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bollor SE and United Parcel Service, you can compare the effects of market volatilities on Bollor SE and United Parcel 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 Bollor SE with a short position of United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bollor SE and United Parcel.
Diversification Opportunities for Bollor SE and United Parcel
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bollor and United is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bollor SE and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service and Bollor SE 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 Bollor SE are associated (or correlated) with United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of Bollor SE i.e., Bollor SE and United Parcel go up and down completely randomly.
Pair Corralation between Bollor SE and United Parcel
Assuming the 90 days horizon Bollor SE is expected to generate 2.1 times less return on investment than United Parcel. But when comparing it to its historical volatility, Bollor SE is 1.28 times less risky than United Parcel. It trades about 0.05 of its potential returns per unit of risk. United Parcel Service is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 11,506 in United Parcel Service on September 12, 2024 and sell it today you would earn a total of 802.00 from holding United Parcel Service or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bollor SE vs. United Parcel Service
Performance |
| Timeline |
| Bollor SE |
| United Parcel Service |
Bollor SE and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bollor SE and United Parcel
The main advantage of trading using opposite Bollor SE and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bollor SE position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| Bollor SE vs. Media and Games | Bollor SE vs. Penn National Gaming | Bollor SE vs. The Yokohama Rubber | Bollor SE vs. Hyster Yale Materials Handling |
| United Parcel vs. SOLSTAD OFFSHORE NK | United Parcel vs. FEMALE HEALTH | United Parcel vs. SIEM OFFSHORE NEW | United Parcel vs. Natural Health Trends |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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