Correlation Between Santos and Uwharrie Capital
Can any of the company-specific risk be diversified away by investing in both Santos and Uwharrie Capital 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 Santos and Uwharrie Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santos Ltd ADR and Uwharrie Capital Corp, you can compare the effects of market volatilities on Santos and Uwharrie Capital 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 Santos with a short position of Uwharrie Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santos and Uwharrie Capital.
Diversification Opportunities for Santos and Uwharrie Capital
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Santos and Uwharrie is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Santos Ltd ADR and Uwharrie Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uwharrie Capital Corp and Santos 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 Santos Ltd ADR are associated (or correlated) with Uwharrie Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uwharrie Capital Corp has no effect on the direction of Santos i.e., Santos and Uwharrie Capital go up and down completely randomly.
Pair Corralation between Santos and Uwharrie Capital
If you would invest 746.00 in Uwharrie Capital Corp on September 1, 2024 and sell it today you would earn a total of 94.00 from holding Uwharrie Capital Corp or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Santos Ltd ADR vs. Uwharrie Capital Corp
Performance |
| Timeline |
| Santos Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Uwharrie Capital Corp |
Santos and Uwharrie Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santos and Uwharrie Capital
The main advantage of trading using opposite Santos and Uwharrie Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santos position performs unexpectedly, Uwharrie Capital 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 Uwharrie Capital will offset losses from the drop in Uwharrie Capital's long position.| Santos vs. Aker BP ASA | Santos vs. Woodside Energy Group | Santos vs. APA Corporation | Santos vs. EQT Corporation |
| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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