Correlation Between Caseys General and UCB -
Can any of the company-specific risk be diversified away by investing in both Caseys General and UCB - 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 Caseys General and UCB - into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and UCB Dusseldorf, you can compare the effects of market volatilities on Caseys General and UCB - 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 Caseys General with a short position of UCB -. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and UCB -.
Diversification Opportunities for Caseys General and UCB -
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Caseys and UCB is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and UCB Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCB Dusseldorf and Caseys General 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 Caseys General Stores are associated (or correlated) with UCB -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCB Dusseldorf has no effect on the direction of Caseys General i.e., Caseys General and UCB - go up and down completely randomly.
Pair Corralation between Caseys General and UCB -
Assuming the 90 days trading horizon Caseys General Stores is expected to under-perform the UCB -. But the stock apears to be less risky and, when comparing its historical volatility, Caseys General Stores is 1.12 times less risky than UCB -. The stock trades about -0.1 of its potential returns per unit of risk. The UCB Dusseldorf is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 18,275 in UCB Dusseldorf on December 3, 2024 and sell it today you would lose (605.00) from holding UCB Dusseldorf or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. UCB Dusseldorf
Performance |
| Timeline |
| Caseys General Stores |
| UCB Dusseldorf |
Caseys General and UCB - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and UCB -
The main advantage of trading using opposite Caseys General and UCB - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, UCB - 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 UCB - will offset losses from the drop in UCB -'s long position.| Caseys General vs. SBI Insurance Group | ||
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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