Correlation Between Ultra Clean and GENERAL
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By analyzing existing cross correlation between Ultra Clean Holdings and GENERAL ELEC CAP, you can compare the effects of market volatilities on Ultra Clean and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and GENERAL.
Diversification Opportunities for Ultra Clean and GENERAL
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ultra and GENERAL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Ultra Clean i.e., Ultra Clean and GENERAL go up and down completely randomly.
Pair Corralation between Ultra Clean and GENERAL
Given the investment horizon of 90 days Ultra Clean Holdings is expected to generate 2.32 times more return on investment than GENERAL. However, Ultra Clean is 2.32 times more volatile than GENERAL ELEC CAP. It trades about 0.02 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about 0.02 per unit of risk. If you would invest 3,588 in Ultra Clean Holdings on September 12, 2024 and sell it today you would earn a total of 116.00 from holding Ultra Clean Holdings or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 39.77% |
| Values | Daily Returns |
Ultra Clean Holdings vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Ultra Clean Holdings |
| GENERAL ELEC CAP |
Ultra Clean and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Clean and GENERAL
The main advantage of trading using opposite Ultra Clean and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Ultra Clean vs. Teradyne | Ultra Clean vs. Onto Innovation | Ultra Clean vs. Cohu Inc | Ultra Clean vs. Entegris |
| GENERAL vs. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. Recursion Pharmaceuticals | GENERAL vs. SoundHound AI |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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