Correlation Between ULTRA CLEAN and Tesla
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN and Tesla 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 Tesla 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 Tesla Inc, you can compare the effects of market volatilities on ULTRA CLEAN and Tesla 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 Tesla. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and Tesla.
Diversification Opportunities for ULTRA CLEAN and Tesla
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ULTRA and Tesla is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and Tesla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesla Inc 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 Tesla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesla Inc has no effect on the direction of ULTRA CLEAN i.e., ULTRA CLEAN and Tesla go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and Tesla
Assuming the 90 days trading horizon ULTRA CLEAN is expected to generate 2.08 times less return on investment than Tesla. But when comparing it to its historical volatility, ULTRA CLEAN HLDGS is 1.27 times less risky than Tesla. It trades about 0.02 of its potential returns per unit of risk. Tesla Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 26,135 in Tesla Inc on August 28, 2024 and sell it today you would earn a total of 6,365 from holding Tesla Inc or generate 24.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. Tesla Inc
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| Tesla Inc |
ULTRA CLEAN and Tesla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and Tesla
The main advantage of trading using opposite ULTRA CLEAN and Tesla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN position performs unexpectedly, Tesla 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 Tesla will offset losses from the drop in Tesla's long position.| ULTRA CLEAN vs. GREENX METALS LTD | ULTRA CLEAN vs. Gaztransport Technigaz SA | ULTRA CLEAN vs. TITANIUM TRANSPORTGROUP | ULTRA CLEAN vs. FIREWEED METALS P |
| Tesla vs. Playa Hotels Resorts | Tesla vs. BioNTech SE | Tesla vs. PLAY2CHILL SA ZY | Tesla vs. INTERSHOP Communications Aktiengesellschaft |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |