Correlation Between Gemz Corp and UHF Logistics
Can any of the company-specific risk be diversified away by investing in both Gemz Corp and UHF Logistics 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 Gemz Corp and UHF Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemz Corp and UHF Logistics Group, you can compare the effects of market volatilities on Gemz Corp and UHF Logistics 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 Gemz Corp with a short position of UHF Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemz Corp and UHF Logistics.
Diversification Opportunities for Gemz Corp and UHF Logistics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gemz and UHF is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gemz Corp and UHF Logistics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UHF Logistics Group and Gemz Corp 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 Gemz Corp are associated (or correlated) with UHF Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UHF Logistics Group has no effect on the direction of Gemz Corp i.e., Gemz Corp and UHF Logistics go up and down completely randomly.
Pair Corralation between Gemz Corp and UHF Logistics
Given the investment horizon of 90 days Gemz Corp is expected to generate 12.9 times less return on investment than UHF Logistics. But when comparing it to its historical volatility, Gemz Corp is 1.14 times less risky than UHF Logistics. It trades about 0.03 of its potential returns per unit of risk. UHF Logistics Group is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2.87 in UHF Logistics Group on November 29, 2024 and sell it today you would earn a total of 7.13 from holding UHF Logistics Group or generate 248.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemz Corp vs. UHF Logistics Group
Performance |
| Timeline |
| Gemz Corp |
| UHF Logistics Group |
Gemz Corp and UHF Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemz Corp and UHF Logistics
The main advantage of trading using opposite Gemz Corp and UHF Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemz Corp position performs unexpectedly, UHF Logistics 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 UHF Logistics will offset losses from the drop in UHF Logistics' long position.| Gemz Corp vs. A1 Group | Gemz Corp vs. Xtra Energy Corp | Gemz Corp vs. Biopower Operations Corp | Gemz Corp vs. New Generation Consumer |
| UHF Logistics vs. New Generation Consumer | UHF Logistics vs. Xtra Energy Corp | UHF Logistics vs. Arsenal Digital Holdings | UHF Logistics vs. Cloudweb |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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