Correlation Between Saule Technologies and UF Games
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and UF Games 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 Saule Technologies and UF Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and UF Games SA, you can compare the effects of market volatilities on Saule Technologies and UF Games 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 Saule Technologies with a short position of UF Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and UF Games.
Diversification Opportunities for Saule Technologies and UF Games
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saule and UFG is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and UF Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UF Games SA and Saule Technologies 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 Saule Technologies SA are associated (or correlated) with UF Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UF Games SA has no effect on the direction of Saule Technologies i.e., Saule Technologies and UF Games go up and down completely randomly.
Pair Corralation between Saule Technologies and UF Games
Assuming the 90 days trading horizon Saule Technologies SA is expected to generate 3.91 times more return on investment than UF Games. However, Saule Technologies is 3.91 times more volatile than UF Games SA. It trades about -0.06 of its potential returns per unit of risk. UF Games SA is currently generating about -0.41 per unit of risk. If you would invest 135.00 in Saule Technologies SA on September 1, 2024 and sell it today you would lose (15.00) from holding Saule Technologies SA or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.0% |
| Values | Daily Returns |
Saule Technologies SA vs. UF Games SA
Performance |
| Timeline |
| Saule Technologies |
| UF Games SA |
Saule Technologies and UF Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and UF Games
The main advantage of trading using opposite Saule Technologies and UF Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, UF Games 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 UF Games will offset losses from the drop in UF Games' long position.| Saule Technologies vs. SOFTWARE MANSION SPOLKA | Saule Technologies vs. Investment Friends Capital | Saule Technologies vs. Cloud Technologies SA | Saule Technologies vs. Quantum Software SA |
| UF Games vs. Bank Millennium SA | UF Games vs. Centrum Finansowe Banku | UF Games vs. Quantum Software SA | UF Games vs. LSI Software SA |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |