Correlation Between DUET Acquisition and UWM Holdings
Can any of the company-specific risk be diversified away by investing in both DUET Acquisition and UWM Holdings 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 DUET Acquisition and UWM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DUET Acquisition Corp and UWM Holdings Corp, you can compare the effects of market volatilities on DUET Acquisition and UWM Holdings 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 DUET Acquisition with a short position of UWM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of DUET Acquisition and UWM Holdings.
Diversification Opportunities for DUET Acquisition and UWM Holdings
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DUET and UWM is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding DUET Acquisition Corp and UWM Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UWM Holdings Corp and DUET Acquisition 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 DUET Acquisition Corp are associated (or correlated) with UWM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UWM Holdings Corp has no effect on the direction of DUET Acquisition i.e., DUET Acquisition and UWM Holdings go up and down completely randomly.
Pair Corralation between DUET Acquisition and UWM Holdings
Given the investment horizon of 90 days DUET Acquisition Corp is expected to generate 0.07 times more return on investment than UWM Holdings. However, DUET Acquisition Corp is 14.82 times less risky than UWM Holdings. It trades about 0.16 of its potential returns per unit of risk. UWM Holdings Corp is currently generating about -0.12 per unit of risk. If you would invest 1,126 in DUET Acquisition Corp on August 27, 2024 and sell it today you would earn a total of 7.00 from holding DUET Acquisition Corp or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DUET Acquisition Corp vs. UWM Holdings Corp
Performance |
| Timeline |
| DUET Acquisition Corp |
| UWM Holdings Corp |
DUET Acquisition and UWM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DUET Acquisition and UWM Holdings
The main advantage of trading using opposite DUET Acquisition and UWM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DUET Acquisition position performs unexpectedly, UWM Holdings 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 UWM Holdings will offset losses from the drop in UWM Holdings' long position.| DUET Acquisition vs. PowerUp Acquisition Corp | DUET Acquisition vs. Aurora Innovation | DUET Acquisition vs. HUMANA INC | DUET Acquisition vs. Aquagold International |
| UWM Holdings vs. Loandepot | UWM Holdings vs. Mr Cooper Group | UWM Holdings vs. PennyMac Finl Svcs | UWM Holdings vs. Walker Dunlop |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |