Correlation Between MasterBrand and Applied UV
Can any of the company-specific risk be diversified away by investing in both MasterBrand and Applied UV 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 MasterBrand and Applied UV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MasterBrand and Applied UV Preferred, you can compare the effects of market volatilities on MasterBrand and Applied UV 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 MasterBrand with a short position of Applied UV. Check out your portfolio center. Please also check ongoing floating volatility patterns of MasterBrand and Applied UV.
Diversification Opportunities for MasterBrand and Applied UV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MasterBrand and Applied is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MasterBrand and Applied UV Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied UV Preferred and MasterBrand 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 MasterBrand are associated (or correlated) with Applied UV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied UV Preferred has no effect on the direction of MasterBrand i.e., MasterBrand and Applied UV go up and down completely randomly.
Pair Corralation between MasterBrand and Applied UV
Considering the 90-day investment horizon MasterBrand is expected to generate 0.14 times more return on investment than Applied UV. However, MasterBrand is 7.05 times less risky than Applied UV. It trades about 0.06 of its potential returns per unit of risk. Applied UV Preferred is currently generating about -0.02 per unit of risk. If you would invest 976.00 in MasterBrand on October 25, 2024 and sell it today you would earn a total of 742.00 from holding MasterBrand or generate 76.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 76.06% |
| Values | Daily Returns |
MasterBrand vs. Applied UV Preferred
Performance |
| Timeline |
| MasterBrand |
| Applied UV Preferred |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MasterBrand and Applied UV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MasterBrand and Applied UV
The main advantage of trading using opposite MasterBrand and Applied UV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MasterBrand position performs unexpectedly, Applied UV 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 Applied UV will offset losses from the drop in Applied UV's long position.| MasterBrand vs. Bassett Furniture Industries | MasterBrand vs. Ethan Allen Interiors | MasterBrand vs. Natuzzi SpA | MasterBrand vs. Flexsteel Industries |
| Applied UV vs. FAT Brands | Applied UV vs. Cadiz Depositary Shares | Applied UV vs. Atlanticus Holdings Corp | Applied UV vs. Presidio Property Trust |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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