Correlation Between Castellum and Unisys
Can any of the company-specific risk be diversified away by investing in both Castellum and Unisys 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 Castellum and Unisys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum and Unisys, you can compare the effects of market volatilities on Castellum and Unisys 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 Castellum with a short position of Unisys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Unisys.
Diversification Opportunities for Castellum and Unisys
Excellent diversification
The 3 months correlation between Castellum and Unisys is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and Unisys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisys and Castellum 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 Castellum are associated (or correlated) with Unisys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisys has no effect on the direction of Castellum i.e., Castellum and Unisys go up and down completely randomly.
Pair Corralation between Castellum and Unisys
Considering the 90-day investment horizon Castellum is expected to generate 1.79 times more return on investment than Unisys. However, Castellum is 1.79 times more volatile than Unisys. It trades about 0.0 of its potential returns per unit of risk. Unisys is currently generating about -0.3 per unit of risk. If you would invest 91.00 in Castellum on November 25, 2024 and sell it today you would lose (7.00) from holding Castellum or give up 7.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Castellum vs. Unisys
Performance |
Timeline |
Castellum |
Unisys |
Castellum and Unisys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Castellum and Unisys
The main advantage of trading using opposite Castellum and Unisys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum position performs unexpectedly, Unisys 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 Unisys will offset losses from the drop in Unisys' long position.Castellum vs. Flint Telecom 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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