Correlation Between UGI and 94973VAT4
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By analyzing existing cross correlation between UGI Corporation and ELV 58 15 AUG 40, you can compare the effects of market volatilities on UGI and 94973VAT4 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 UGI with a short position of 94973VAT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of UGI and 94973VAT4.
Diversification Opportunities for UGI and 94973VAT4
Excellent diversification
The 3 months correlation between UGI and 94973VAT4 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding UGI Corp. and ELV 58 15 AUG 40 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELV 58 15 and UGI 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 UGI Corporation are associated (or correlated) with 94973VAT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELV 58 15 has no effect on the direction of UGI i.e., UGI and 94973VAT4 go up and down completely randomly.
Pair Corralation between UGI and 94973VAT4
Considering the 90-day investment horizon UGI Corporation is expected to under-perform the 94973VAT4. But the stock apears to be less risky and, when comparing its historical volatility, UGI Corporation is 1.23 times less risky than 94973VAT4. The stock trades about 0.0 of its potential returns per unit of risk. The ELV 58 15 AUG 40 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,748 in ELV 58 15 AUG 40 on November 2, 2024 and sell it today you would earn a total of 1,111 from holding ELV 58 15 AUG 40 or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 15.38% |
| Values | Daily Returns |
UGI Corp. vs. ELV 58 15 AUG 40
Performance |
| Timeline |
| UGI Corporation |
| ELV 58 15 |
UGI and 94973VAT4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UGI and 94973VAT4
The main advantage of trading using opposite UGI and 94973VAT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UGI position performs unexpectedly, 94973VAT4 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 94973VAT4 will offset losses from the drop in 94973VAT4's long position.The idea behind UGI Corporation and ELV 58 15 AUG 40 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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