Correlation Between Altria and Applied UV
Can any of the company-specific risk be diversified away by investing in both Altria 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 Altria and Applied UV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altria Group and Applied UV Preferred, you can compare the effects of market volatilities on Altria 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 Altria with a short position of Applied UV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altria and Applied UV.
Diversification Opportunities for Altria and Applied UV
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altria and Applied is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Altria Group 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 Altria 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 Altria Group 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 Altria i.e., Altria and Applied UV go up and down completely randomly.
Pair Corralation between Altria and Applied UV
If you would invest 3.00 in Applied UV Preferred on October 9, 2024 and sell it today you would earn a total of 0.00 from holding Applied UV Preferred or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Altria Group vs. Applied UV Preferred
Performance |
| Timeline |
| Altria Group |
| Applied UV Preferred |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Altria and Applied UV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altria and Applied UV
The main advantage of trading using opposite Altria and Applied UV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altria 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.| Altria vs. British American Tobacco | Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. Philip Morris International |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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