Correlation Between Universal Electronics and Sharp
Can any of the company-specific risk be diversified away by investing in both Universal Electronics and Sharp 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 Universal Electronics and Sharp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Electronics and Sharp, you can compare the effects of market volatilities on Universal Electronics and Sharp 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 Universal Electronics with a short position of Sharp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Electronics and Sharp.
Diversification Opportunities for Universal Electronics and Sharp
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Universal and Sharp is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Universal Electronics and Sharp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharp and Universal Electronics 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 Universal Electronics are associated (or correlated) with Sharp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharp has no effect on the direction of Universal Electronics i.e., Universal Electronics and Sharp go up and down completely randomly.
Pair Corralation between Universal Electronics and Sharp
If you would invest 838.00 in Universal Electronics on August 27, 2024 and sell it today you would earn a total of 295.00 from holding Universal Electronics or generate 35.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Electronics vs. Sharp
Performance |
| Timeline |
| Universal Electronics |
| Sharp |
Universal Electronics and Sharp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Electronics and Sharp
The main advantage of trading using opposite Universal Electronics and Sharp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Electronics position performs unexpectedly, Sharp 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 Sharp will offset losses from the drop in Sharp's long position.| Universal Electronics vs. LG Display Co | Universal Electronics vs. Vizio Holding Corp | Universal Electronics vs. Zepp Health Corp | Universal Electronics vs. Sonos Inc |
| Sharp vs. TCL Electronics Holdings | Sharp vs. Casio Computer Co | Sharp vs. Xiaomi Corp | Sharp vs. Samsung Electronics Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |