Correlation Between Ultra Clean and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Ultra Clean and Schibsted ASA 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 Schibsted ASA 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 Schibsted ASA A, you can compare the effects of market volatilities on Ultra Clean and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and Schibsted ASA.
Diversification Opportunities for Ultra Clean and Schibsted ASA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ultra and Schibsted is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and Schibsted ASA A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA A 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA A has no effect on the direction of Ultra Clean i.e., Ultra Clean and Schibsted ASA go up and down completely randomly.
Pair Corralation between Ultra Clean and Schibsted ASA
Assuming the 90 days horizon Ultra Clean is expected to generate 1.95 times less return on investment than Schibsted ASA. But when comparing it to its historical volatility, Ultra Clean Holdings is 1.14 times less risky than Schibsted ASA. It trades about 0.06 of its potential returns per unit of risk. Schibsted ASA A is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,301 in Schibsted ASA A on September 15, 2024 and sell it today you would earn a total of 1,903 from holding Schibsted ASA A or generate 146.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Ultra Clean Holdings vs. Schibsted ASA A
Performance |
| Timeline |
| Ultra Clean Holdings |
| Schibsted ASA A |
Ultra Clean and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Clean and Schibsted ASA
The main advantage of trading using opposite Ultra Clean and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Ultra Clean vs. LPKF Laser Electronics | Ultra Clean vs. Renesas Electronics | Ultra Clean vs. UET United Electronic | Ultra Clean vs. MYFAIR GOLD P |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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