Correlation Between NCL International and Ubis Public
Can any of the company-specific risk be diversified away by investing in both NCL International and Ubis Public 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 NCL International and Ubis Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NCL International Logistics and Ubis Public, you can compare the effects of market volatilities on NCL International and Ubis Public 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 NCL International with a short position of Ubis Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCL International and Ubis Public.
Diversification Opportunities for NCL International and Ubis Public
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NCL and Ubis is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding NCL International Logistics and Ubis Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubis Public and NCL International 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 NCL International Logistics are associated (or correlated) with Ubis Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubis Public has no effect on the direction of NCL International i.e., NCL International and Ubis Public go up and down completely randomly.
Pair Corralation between NCL International and Ubis Public
Assuming the 90 days trading horizon NCL International is expected to generate 1.05 times less return on investment than Ubis Public. In addition to that, NCL International is 1.01 times more volatile than Ubis Public. It trades about 0.04 of its total potential returns per unit of risk. Ubis Public is currently generating about 0.04 per unit of volatility. If you would invest 370.00 in Ubis Public on August 29, 2024 and sell it today you would lose (204.00) from holding Ubis Public or give up 55.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NCL International Logistics vs. Ubis Public
Performance |
| Timeline |
| NCL International |
| Ubis Public |
NCL International and Ubis Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCL International and Ubis Public
The main advantage of trading using opposite NCL International and Ubis Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCL International position performs unexpectedly, Ubis Public 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 Ubis Public will offset losses from the drop in Ubis Public's long position.| NCL International vs. Kingsmen CMTI Public | NCL International vs. International Research | NCL International vs. Masterkool International Public | NCL International vs. News Network |
| Ubis Public vs. Unimit Engineering Public | Ubis Public vs. Winner Group Enterprise | Ubis Public vs. Union Petrochemical Public | Ubis Public vs. Thai Mitsuwa Public |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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