Correlation Between Ultra Clean and Sable Offshore
Can any of the company-specific risk be diversified away by investing in both Ultra Clean and Sable Offshore 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 Sable Offshore 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 Sable Offshore Corp, you can compare the effects of market volatilities on Ultra Clean and Sable Offshore 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 Sable Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and Sable Offshore.
Diversification Opportunities for Ultra Clean and Sable Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ultra and Sable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore Corp 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 Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Ultra Clean i.e., Ultra Clean and Sable Offshore go up and down completely randomly.
Pair Corralation between Ultra Clean and Sable Offshore
Given the investment horizon of 90 days Ultra Clean Holdings is expected to generate 0.81 times more return on investment than Sable Offshore. However, Ultra Clean Holdings is 1.23 times less risky than Sable Offshore. It trades about 0.26 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.09 per unit of risk. If you would invest 3,345 in Ultra Clean Holdings on September 1, 2024 and sell it today you would earn a total of 498.00 from holding Ultra Clean Holdings or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Clean Holdings vs. Sable Offshore Corp
Performance |
| Timeline |
| Ultra Clean Holdings |
| Sable Offshore Corp |
Ultra Clean and Sable Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Clean and Sable Offshore
The main advantage of trading using opposite Ultra Clean and Sable Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean position performs unexpectedly, Sable Offshore 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 Sable Offshore will offset losses from the drop in Sable Offshore's long position.| Ultra Clean vs. Amtech Systems | Ultra Clean vs. Veeco Instruments | Ultra Clean vs. Cohu Inc | Ultra Clean vs. Onto Innovation |
| Sable Offshore vs. Helmerich and Payne | Sable Offshore vs. Noble plc | Sable Offshore vs. Nabors Industries | Sable Offshore vs. Precision Drilling |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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