Correlation Between SERI INDUSTRIAL and United Internet
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and United Internet 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 SERI INDUSTRIAL and United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and United Internet AG, you can compare the effects of market volatilities on SERI INDUSTRIAL and United Internet 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 SERI INDUSTRIAL with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and United Internet.
Diversification Opportunities for SERI INDUSTRIAL and United Internet
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SERI and United is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and United Internet go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and United Internet
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the United Internet. In addition to that, SERI INDUSTRIAL is 1.65 times more volatile than United Internet AG. It trades about 0.0 of its total potential returns per unit of risk. United Internet AG is currently generating about 0.04 per unit of volatility. If you would invest 1,276 in United Internet AG on September 12, 2024 and sell it today you would earn a total of 356.00 from holding United Internet AG or generate 27.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. United Internet AG
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| United Internet AG |
SERI INDUSTRIAL and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and United Internet
The main advantage of trading using opposite SERI INDUSTRIAL and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| SERI INDUSTRIAL vs. Ameriprise Financial | SERI INDUSTRIAL vs. Gamma Communications plc | SERI INDUSTRIAL vs. IMPERIAL TOBACCO | SERI INDUSTRIAL vs. Cogent Communications Holdings |
| United Internet vs. Superior Plus Corp | United Internet vs. SIVERS SEMICONDUCTORS AB | United Internet vs. Norsk Hydro ASA | United Internet vs. Reliance Steel Aluminum |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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