Correlation Between Ultra Clean and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Ultra Clean and GEN Restaurant 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 GEN Restaurant 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 GEN Restaurant Group,, you can compare the effects of market volatilities on Ultra Clean and GEN Restaurant 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 GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and GEN Restaurant.
Diversification Opportunities for Ultra Clean and GEN Restaurant
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ultra and GEN is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, 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 GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Ultra Clean i.e., Ultra Clean and GEN Restaurant go up and down completely randomly.
Pair Corralation between Ultra Clean and GEN Restaurant
Given the investment horizon of 90 days Ultra Clean Holdings is expected to generate 0.9 times more return on investment than GEN Restaurant. However, Ultra Clean Holdings is 1.11 times less risky than GEN Restaurant. It trades about 0.02 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about -0.04 per unit of risk. If you would invest 3,735 in Ultra Clean Holdings on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Ultra Clean Holdings or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Clean Holdings vs. GEN Restaurant Group,
Performance |
| Timeline |
| Ultra Clean Holdings |
| GEN Restaurant Group, |
Ultra Clean and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Clean and GEN Restaurant
The main advantage of trading using opposite Ultra Clean and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant's long position.| Ultra Clean vs. Power Integrations | Ultra Clean vs. Diodes Incorporated | Ultra Clean vs. MACOM Technology Solutions | Ultra Clean vs. Cirrus Logic |
| GEN Restaurant vs. Jack In The | GEN Restaurant vs. Potbelly Co | GEN Restaurant vs. BJs Restaurants | GEN Restaurant vs. One Group Hospitality |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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