Correlation Between Carmat SA and ULTRA CLEAN
Can any of the company-specific risk be diversified away by investing in both Carmat SA and ULTRA CLEAN 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 Carmat SA and ULTRA CLEAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and ULTRA CLEAN HLDGS, you can compare the effects of market volatilities on Carmat SA and ULTRA CLEAN 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 Carmat SA with a short position of ULTRA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and ULTRA CLEAN.
Diversification Opportunities for Carmat SA and ULTRA CLEAN
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carmat and ULTRA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and ULTRA CLEAN HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ULTRA CLEAN HLDGS and Carmat SA 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 Carmat SA are associated (or correlated) with ULTRA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ULTRA CLEAN HLDGS has no effect on the direction of Carmat SA i.e., Carmat SA and ULTRA CLEAN go up and down completely randomly.
Pair Corralation between Carmat SA and ULTRA CLEAN
Assuming the 90 days horizon Carmat SA is expected to under-perform the ULTRA CLEAN. In addition to that, Carmat SA is 1.64 times more volatile than ULTRA CLEAN HLDGS. It trades about -0.18 of its total potential returns per unit of risk. ULTRA CLEAN HLDGS is currently generating about 0.06 per unit of volatility. If you would invest 3,360 in ULTRA CLEAN HLDGS on August 28, 2024 and sell it today you would earn a total of 340.00 from holding ULTRA CLEAN HLDGS or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. ULTRA CLEAN HLDGS
Performance |
| Timeline |
| Carmat SA |
| ULTRA CLEAN HLDGS |
Carmat SA and ULTRA CLEAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and ULTRA CLEAN
The main advantage of trading using opposite Carmat SA and ULTRA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA position performs unexpectedly, ULTRA CLEAN 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 ULTRA CLEAN will offset losses from the drop in ULTRA CLEAN's long position.| Carmat SA vs. Intuitive Surgical | Carmat SA vs. Superior Plus Corp | Carmat SA vs. NMI Holdings | Carmat SA vs. Origin Agritech |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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