Correlation Between Traeger and Applied UV
Can any of the company-specific risk be diversified away by investing in both Traeger and Applied UV 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 Traeger and Applied UV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Traeger and Applied UV, you can compare the effects of market volatilities on Traeger and Applied UV 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 Traeger with a short position of Applied UV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traeger and Applied UV.
Diversification Opportunities for Traeger and Applied UV
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Traeger and Applied is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Traeger and Applied UV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied UV and Traeger 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 Traeger are associated (or correlated) with Applied UV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied UV has no effect on the direction of Traeger i.e., Traeger and Applied UV go up and down completely randomly.
Pair Corralation between Traeger and Applied UV
If you would invest 1.30 in Applied UV on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Applied UV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Traeger vs. Applied UV
Performance |
| Timeline |
| Traeger |
| Applied UV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Traeger and Applied UV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Traeger and Applied UV
The main advantage of trading using opposite Traeger and Applied UV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traeger position performs unexpectedly, Applied UV 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 Applied UV will offset losses from the drop in Applied UV's long position.| Traeger vs. Sleep Number Corp | Traeger vs. Tempur Sealy International | Traeger vs. The Lovesac | Traeger vs. MillerKnoll |
| Applied UV vs. FGI Industries | Applied UV vs. Aterian | Applied UV vs. Energy Focu | Applied UV vs. MasterBrand |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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