Correlation Between Universal Display and EMagin
Can any of the company-specific risk be diversified away by investing in both Universal Display and EMagin 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 Universal Display and EMagin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Display and EMagin, you can compare the effects of market volatilities on Universal Display and EMagin 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 Universal Display with a short position of EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and EMagin.
Diversification Opportunities for Universal Display and EMagin
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Universal and EMagin is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin and Universal Display 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 Universal Display are associated (or correlated) with EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of Universal Display i.e., Universal Display and EMagin go up and down completely randomly.
Pair Corralation between Universal Display and EMagin
If you would invest 17,511 in Universal Display on August 28, 2024 and sell it today you would lose (577.00) from holding Universal Display or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Universal Display vs. EMagin
Performance |
| Timeline |
| Universal Display |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Universal Display and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Display and EMagin
The main advantage of trading using opposite Universal Display and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.The idea behind Universal Display and EMagin pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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