Correlation Between Tremor International and Uwharrie Capital
Can any of the company-specific risk be diversified away by investing in both Tremor International 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 Tremor International and Uwharrie Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tremor International and Uwharrie Capital Corp, you can compare the effects of market volatilities on Tremor International 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 Tremor International with a short position of Uwharrie Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tremor International and Uwharrie Capital.
Diversification Opportunities for Tremor International and Uwharrie Capital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tremor and Uwharrie is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tremor International 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 Tremor International 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 Tremor International 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 Tremor International i.e., Tremor International and Uwharrie Capital go up and down completely randomly.
Pair Corralation between Tremor International and Uwharrie Capital
Assuming the 90 days horizon Tremor International is expected to generate 5.25 times more return on investment than Uwharrie Capital. However, Tremor International is 5.25 times more volatile than Uwharrie Capital Corp. It trades about 0.09 of its potential returns per unit of risk. Uwharrie Capital Corp is currently generating about 0.1 per unit of risk. If you would invest 300.00 in Tremor International on September 1, 2024 and sell it today you would earn a total of 184.00 from holding Tremor International or generate 61.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Tremor International vs. Uwharrie Capital Corp
Performance |
| Timeline |
| Tremor International |
| Uwharrie Capital Corp |
Tremor International and Uwharrie Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tremor International and Uwharrie Capital
The main advantage of trading using opposite Tremor International and Uwharrie Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tremor International 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.| Tremor International vs. Beyond Commerce | Tremor International vs. Baosheng Media Group | Tremor International vs. MGO Global Common | Tremor International vs. CMG Holdings Group |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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