Correlation Between Unity Software and Grupa KTY
Can any of the company-specific risk be diversified away by investing in both Unity Software and Grupa KTY 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 Unity Software and Grupa KTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unity Software and Grupa KTY SA, you can compare the effects of market volatilities on Unity Software and Grupa KTY 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 Unity Software with a short position of Grupa KTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unity Software and Grupa KTY.
Diversification Opportunities for Unity Software and Grupa KTY
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unity and Grupa is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Unity Software and Grupa KTY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa KTY SA and Unity Software 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 Unity Software are associated (or correlated) with Grupa KTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa KTY SA has no effect on the direction of Unity Software i.e., Unity Software and Grupa KTY go up and down completely randomly.
Pair Corralation between Unity Software and Grupa KTY
Taking into account the 90-day investment horizon Unity Software is expected to generate 2.3 times more return on investment than Grupa KTY. However, Unity Software is 2.3 times more volatile than Grupa KTY SA. It trades about 0.22 of its potential returns per unit of risk. Grupa KTY SA is currently generating about 0.15 per unit of risk. If you would invest 2,162 in Unity Software on September 6, 2024 and sell it today you would earn a total of 472.00 from holding Unity Software or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unity Software vs. Grupa KTY SA
Performance |
| Timeline |
| Unity Software |
| Grupa KTY SA |
Unity Software and Grupa KTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unity Software and Grupa KTY
The main advantage of trading using opposite Unity Software and Grupa KTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unity Software position performs unexpectedly, Grupa KTY 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 Grupa KTY will offset losses from the drop in Grupa KTY's long position.| Unity Software vs. Zoom Video Communications | Unity Software vs. C3 Ai Inc | Unity Software vs. Shopify | Unity Software vs. Salesforce |
| Grupa KTY vs. Asseco Business Solutions | Grupa KTY vs. Detalion Games SA | Grupa KTY vs. Kogeneracja SA | Grupa KTY vs. Asseco South Eastern |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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