Correlation Between Ultra Clean and Société Générale
Can any of the company-specific risk be diversified away by investing in both Ultra Clean and Société Générale 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 Société Générale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Clean Holdings and Socit Gnrale Socit, you can compare the effects of market volatilities on Ultra Clean and Société Générale 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 Société Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and Société Générale.
Diversification Opportunities for Ultra Clean and Société Générale
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ultra and Société is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit 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 Holdings are associated (or correlated) with Société Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of Ultra Clean i.e., Ultra Clean and Société Générale go up and down completely randomly.
Pair Corralation between Ultra Clean and Société Générale
Assuming the 90 days horizon Ultra Clean Holdings is expected to generate 1.8 times more return on investment than Société Générale. However, Ultra Clean is 1.8 times more volatile than Socit Gnrale Socit. It trades about 0.16 of its potential returns per unit of risk. Socit Gnrale Socit is currently generating about 0.04 per unit of risk. If you would invest 3,500 in Ultra Clean Holdings on October 15, 2024 and sell it today you would earn a total of 200.00 from holding Ultra Clean Holdings or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Clean Holdings vs. Socit Gnrale Socit
Performance |
| Timeline |
| Ultra Clean Holdings |
| Socit Gnrale Socit |
Ultra Clean and Société Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Clean and Société Générale
The main advantage of trading using opposite Ultra Clean and Société Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean position performs unexpectedly, Société Générale 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 Société Générale will offset losses from the drop in Société Générale's long position.| Ultra Clean vs. Yuexiu Transport Infrastructure | Ultra Clean vs. Urban Outfitters | Ultra Clean vs. AM EAGLE OUTFITTERS | Ultra Clean vs. FIREWEED METALS P |
| Société Générale vs. Ultra Clean Holdings | Société Générale vs. EMBARK EDUCATION LTD | Société Générale vs. betterU Education Corp | Société Générale vs. Carnegie Clean Energy |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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