Correlation Between U Blox and Comet Holding
Can any of the company-specific risk be diversified away by investing in both U Blox and Comet Holding 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 U Blox and Comet Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Blox Holding and Comet Holding AG, you can compare the effects of market volatilities on U Blox and Comet Holding 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 U Blox with a short position of Comet Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Blox and Comet Holding.
Diversification Opportunities for U Blox and Comet Holding
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UBXN and Comet is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding U Blox Holding and Comet Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comet Holding AG and U Blox 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 U Blox Holding are associated (or correlated) with Comet Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comet Holding AG has no effect on the direction of U Blox i.e., U Blox and Comet Holding go up and down completely randomly.
Pair Corralation between U Blox and Comet Holding
Assuming the 90 days trading horizon U Blox Holding is expected to under-perform the Comet Holding. In addition to that, U Blox is 1.11 times more volatile than Comet Holding AG. It trades about -0.03 of its total potential returns per unit of risk. Comet Holding AG is currently generating about 0.04 per unit of volatility. If you would invest 21,228 in Comet Holding AG on August 31, 2024 and sell it today you would earn a total of 6,372 from holding Comet Holding AG or generate 30.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Blox Holding vs. Comet Holding AG
Performance |
| Timeline |
| U Blox Holding |
| Comet Holding AG |
U Blox and Comet Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Blox and Comet Holding
The main advantage of trading using opposite U Blox and Comet Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Blox position performs unexpectedly, Comet Holding 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 Comet Holding will offset losses from the drop in Comet Holding's long position.| U Blox vs. Jungfraubahn Holding AG | U Blox vs. Amsterdam Commodities NV | U Blox vs. Flow Traders BV | U Blox vs. ForFarmers NV |
| Comet Holding vs. VAT Group AG | Comet Holding vs. Bachem Holding AG | Comet Holding vs. Inficon Holding | Comet Holding vs. Tecan Group AG |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |