Correlation Between U Blox and Jungfraubahn Holding
Can any of the company-specific risk be diversified away by investing in both U Blox and Jungfraubahn 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 Jungfraubahn 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 Jungfraubahn Holding AG, you can compare the effects of market volatilities on U Blox and Jungfraubahn 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 Jungfraubahn Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Blox and Jungfraubahn Holding.
Diversification Opportunities for U Blox and Jungfraubahn Holding
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBXN and Jungfraubahn is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding U Blox Holding and Jungfraubahn Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungfraubahn Holding 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 Jungfraubahn Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungfraubahn Holding has no effect on the direction of U Blox i.e., U Blox and Jungfraubahn Holding go up and down completely randomly.
Pair Corralation between U Blox and Jungfraubahn Holding
Assuming the 90 days trading horizon U Blox Holding is expected to under-perform the Jungfraubahn Holding. In addition to that, U Blox is 1.81 times more volatile than Jungfraubahn Holding AG. It trades about -0.11 of its total potential returns per unit of risk. Jungfraubahn Holding AG is currently generating about -0.09 per unit of volatility. If you would invest 19,440 in Jungfraubahn Holding AG on September 3, 2024 and sell it today you would lose (2,600) from holding Jungfraubahn Holding AG or give up 13.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Blox Holding vs. Jungfraubahn Holding AG
Performance |
| Timeline |
| U Blox Holding |
| Jungfraubahn Holding |
U Blox and Jungfraubahn Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Blox and Jungfraubahn Holding
The main advantage of trading using opposite U Blox and Jungfraubahn Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Blox position performs unexpectedly, Jungfraubahn 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 Jungfraubahn Holding will offset losses from the drop in Jungfraubahn Holding's long position.The idea behind U Blox Holding and Jungfraubahn Holding AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jungfraubahn Holding vs. Emmi AG | Jungfraubahn Holding vs. Flughafen Zurich | Jungfraubahn Holding vs. Bergbahnen Engelberg Truebsee | Jungfraubahn Holding vs. EMS CHEMIE HOLDING 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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