Correlation Between ULTRA CLEAN and Ontex Group
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN and Ontex Group 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 ULTRA CLEAN and Ontex Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and Ontex Group NV, you can compare the effects of market volatilities on ULTRA CLEAN and Ontex Group 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 ULTRA CLEAN with a short position of Ontex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and Ontex Group.
Diversification Opportunities for ULTRA CLEAN and Ontex Group
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between ULTRA and Ontex is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and Ontex Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontex Group NV and ULTRA CLEAN 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 ULTRA CLEAN HLDGS are associated (or correlated) with Ontex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontex Group NV has no effect on the direction of ULTRA CLEAN i.e., ULTRA CLEAN and Ontex Group go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and Ontex Group
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 1.91 times more return on investment than Ontex Group. However, ULTRA CLEAN is 1.91 times more volatile than Ontex Group NV. It trades about 0.04 of its potential returns per unit of risk. Ontex Group NV is currently generating about -0.1 per unit of risk. If you would invest 3,400 in ULTRA CLEAN HLDGS on September 2, 2024 and sell it today you would earn a total of 220.00 from holding ULTRA CLEAN HLDGS or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. Ontex Group NV
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| Ontex Group NV |
ULTRA CLEAN and Ontex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and Ontex Group
The main advantage of trading using opposite ULTRA CLEAN and Ontex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN position performs unexpectedly, Ontex Group 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 Ontex Group will offset losses from the drop in Ontex Group's long position.| ULTRA CLEAN vs. Ping An Insurance | ULTRA CLEAN vs. COSTCO WHOLESALE CDR | ULTRA CLEAN vs. Zurich Insurance Group | ULTRA CLEAN vs. BURLINGTON STORES |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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