Correlation Between Ontex Group and Unifiedpost Group
Can any of the company-specific risk be diversified away by investing in both Ontex Group and Unifiedpost Group 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 Ontex Group and Unifiedpost Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ontex Group NV and Unifiedpost Group SA, you can compare the effects of market volatilities on Ontex Group and Unifiedpost Group 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 Ontex Group with a short position of Unifiedpost Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ontex Group and Unifiedpost Group.
Diversification Opportunities for Ontex Group and Unifiedpost Group
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ontex and Unifiedpost is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ontex Group NV and Unifiedpost Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unifiedpost Group and Ontex Group 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 Ontex Group NV are associated (or correlated) with Unifiedpost Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unifiedpost Group has no effect on the direction of Ontex Group i.e., Ontex Group and Unifiedpost Group go up and down completely randomly.
Pair Corralation between Ontex Group and Unifiedpost Group
Assuming the 90 days trading horizon Ontex Group NV is expected to under-perform the Unifiedpost Group. But the stock apears to be less risky and, when comparing its historical volatility, Ontex Group NV is 1.26 times less risky than Unifiedpost Group. The stock trades about -0.03 of its potential returns per unit of risk. The Unifiedpost Group SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 326.00 in Unifiedpost Group SA on November 4, 2024 and sell it today you would lose (2.00) from holding Unifiedpost Group SA or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ontex Group NV vs. Unifiedpost Group SA
Performance |
| Timeline |
| Ontex Group NV |
| Unifiedpost Group |
Ontex Group and Unifiedpost Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ontex Group and Unifiedpost Group
The main advantage of trading using opposite Ontex Group and Unifiedpost Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ontex Group position performs unexpectedly, Unifiedpost Group 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 Unifiedpost Group will offset losses from the drop in Unifiedpost Group's long position.| Ontex Group vs. Bpost NV | Ontex Group vs. Barco NV | Ontex Group vs. Biocartis Group NV | Ontex Group vs. ageas SANV |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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