Correlation Between US Global and United Parks
Can any of the company-specific risk be diversified away by investing in both US Global and United Parks 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 US Global and United Parks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and United Parks Resorts, you can compare the effects of market volatilities on US Global and United Parks 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 US Global with a short position of United Parks. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and United Parks.
Diversification Opportunities for US Global and United Parks
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between GROW and United is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and United Parks Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parks Resorts and US Global 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 US Global Investors are associated (or correlated) with United Parks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parks Resorts has no effect on the direction of US Global i.e., US Global and United Parks go up and down completely randomly.
Pair Corralation between US Global and United Parks
Given the investment horizon of 90 days US Global Investors is expected to generate 0.4 times more return on investment than United Parks. However, US Global Investors is 2.5 times less risky than United Parks. It trades about 0.04 of its potential returns per unit of risk. United Parks Resorts is currently generating about -0.08 per unit of risk. If you would invest 242.00 in US Global Investors on October 20, 2024 and sell it today you would earn a total of 1.00 from holding US Global Investors or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. United Parks Resorts
Performance |
| Timeline |
| US Global Investors |
| United Parks Resorts |
US Global and United Parks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and United Parks
The main advantage of trading using opposite US Global and United Parks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global position performs unexpectedly, United Parks 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 United Parks will offset losses from the drop in United Parks' long position.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| United Parks vs. US Global Investors | United Parks vs. RadNet Inc | United Parks vs. Logan Ridge Finance | United Parks vs. BRC Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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