Correlation Between Universal Display and Newell
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By analyzing existing cross correlation between Universal Display and Newell Brands 42, you can compare the effects of market volatilities on Universal Display and Newell 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 Newell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and Newell.
Diversification Opportunities for Universal Display and Newell
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Universal and Newell is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display and Newell Brands 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newell Brands 42 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 Newell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newell Brands 42 has no effect on the direction of Universal Display i.e., Universal Display and Newell go up and down completely randomly.
Pair Corralation between Universal Display and Newell
Given the investment horizon of 90 days Universal Display is expected to under-perform the Newell. In addition to that, Universal Display is 5.02 times more volatile than Newell Brands 42. It trades about -0.01 of its total potential returns per unit of risk. Newell Brands 42 is currently generating about -0.05 per unit of volatility. If you would invest 9,920 in Newell Brands 42 on September 5, 2024 and sell it today you would lose (410.00) from holding Newell Brands 42 or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
Universal Display vs. Newell Brands 42
Performance |
| Timeline |
| Universal Display |
| Newell Brands 42 |
Universal Display and Newell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Display and Newell
The main advantage of trading using opposite Universal Display and Newell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display position performs unexpectedly, Newell 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 Newell will offset losses from the drop in Newell's long position.| Universal Display vs. Plexus Corp | Universal Display vs. Methode Electronics | Universal Display vs. Benchmark Electronics | Universal Display vs. Bel Fuse A |
| Newell vs. Universal Display | Newell vs. Cadence Design Systems | Newell vs. Hasbro Inc | Newell vs. Rackspace Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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