Correlation Between Cboe UK and United Internet
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By analyzing existing cross correlation between Cboe UK Consumer and United Internet AG, you can compare the effects of market volatilities on Cboe UK and United Internet 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 Cboe UK with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and United Internet.
Diversification Opportunities for Cboe UK and United Internet
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cboe and United is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Cboe UK i.e., Cboe UK and United Internet go up and down completely randomly.
Pair Corralation between Cboe UK and United Internet
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.41 times more return on investment than United Internet. However, Cboe UK Consumer is 2.45 times less risky than United Internet. It trades about 0.3 of its potential returns per unit of risk. United Internet AG is currently generating about -0.14 per unit of risk. If you would invest 2,723,205 in Cboe UK Consumer on August 28, 2024 and sell it today you would earn a total of 519,786 from holding Cboe UK Consumer or generate 19.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. United Internet AG
Performance |
| Timeline |
Cboe UK and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
United Internet AG
Pair trading matchups for United Internet
Pair Trading with Cboe UK and United Internet
The main advantage of trading using opposite Cboe UK and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, United Internet 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 Internet will offset losses from the drop in United Internet's long position.| Cboe UK vs. Skandinaviska Enskilda Banken | Cboe UK vs. Arrow Electronics | Cboe UK vs. Qurate Retail Series | Cboe UK vs. Alior Bank SA |
| United Internet vs. Silvercorp Metals | United Internet vs. Gaming Realms plc | United Internet vs. Naked Wines plc | United Internet vs. Neometals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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