Correlation Between Stock Exchange and UAC Global
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and UAC Global 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 Stock Exchange and UAC Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and UAC Global Public, you can compare the effects of market volatilities on Stock Exchange and UAC Global 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 Stock Exchange with a short position of UAC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and UAC Global.
Diversification Opportunities for Stock Exchange and UAC Global
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Stock and UAC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and UAC Global Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UAC Global Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with UAC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UAC Global Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and UAC Global go up and down completely randomly.
Pair Corralation between Stock Exchange and UAC Global
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the UAC Global. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 2.46 times less risky than UAC Global. The index trades about -0.52 of its potential returns per unit of risk. The UAC Global Public is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 302.00 in UAC Global Public on November 28, 2024 and sell it today you would lose (20.00) from holding UAC Global Public or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. UAC Global Public
Performance |
| Timeline |
Stock Exchange and UAC Global Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
UAC Global Public
Pair trading matchups for UAC Global
Pair Trading with Stock Exchange and UAC Global
The main advantage of trading using opposite Stock Exchange and UAC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, UAC Global 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 UAC Global will offset losses from the drop in UAC Global's long position.| Stock Exchange vs. Amanah Leasing Public | Stock Exchange vs. Symphony Communication Public | Stock Exchange vs. Micro Leasing Public | Stock Exchange vs. Planet Communications Asia |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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