Correlation Between Ubis Public and Yuasa Battery
Can any of the company-specific risk be diversified away by investing in both Ubis Public and Yuasa Battery 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 Ubis Public and Yuasa Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubis Public and Yuasa Battery Public, you can compare the effects of market volatilities on Ubis Public and Yuasa Battery 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 Ubis Public with a short position of Yuasa Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubis Public and Yuasa Battery.
Diversification Opportunities for Ubis Public and Yuasa Battery
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ubis and Yuasa is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ubis Public and Yuasa Battery Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuasa Battery Public and Ubis Public 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 Ubis Public are associated (or correlated) with Yuasa Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuasa Battery Public has no effect on the direction of Ubis Public i.e., Ubis Public and Yuasa Battery go up and down completely randomly.
Pair Corralation between Ubis Public and Yuasa Battery
Assuming the 90 days trading horizon Ubis Public is expected to under-perform the Yuasa Battery. In addition to that, Ubis Public is 1.28 times more volatile than Yuasa Battery Public. It trades about -0.4 of its total potential returns per unit of risk. Yuasa Battery Public is currently generating about -0.19 per unit of volatility. If you would invest 1,090 in Yuasa Battery Public on August 30, 2024 and sell it today you would lose (60.00) from holding Yuasa Battery Public or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubis Public vs. Yuasa Battery Public
Performance |
| Timeline |
| Ubis Public |
| Yuasa Battery Public |
Ubis Public and Yuasa Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubis Public and Yuasa Battery
The main advantage of trading using opposite Ubis Public and Yuasa Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubis Public position performs unexpectedly, Yuasa Battery 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 Yuasa Battery will offset losses from the drop in Yuasa Battery's long position.| Ubis Public vs. Unimit Engineering Public | Ubis Public vs. Winner Group Enterprise | Ubis Public vs. Union Petrochemical Public | Ubis Public vs. Thai Mitsuwa Public |
| Yuasa Battery vs. Union Petrochemical Public | Yuasa Battery vs. Unimit Engineering Public | Yuasa Battery vs. Ubis Public | Yuasa Battery vs. Unique Mining Services |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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