Correlation Between UGI Corp and UGI
Can any of the company-specific risk be diversified away by investing in both UGI Corp and UGI 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 UGI Corp and UGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UGI Corp Unit and UGI Corporation, you can compare the effects of market volatilities on UGI Corp and UGI 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 Corp with a short position of UGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of UGI Corp and UGI.
Diversification Opportunities for UGI Corp and UGI
Pay attention - limited upside
The 3 months correlation between UGI and UGI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UGI Corp Unit and UGI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UGI Corporation and UGI Corp 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 Corp Unit are associated (or correlated) with UGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UGI Corporation has no effect on the direction of UGI Corp i.e., UGI Corp and UGI go up and down completely randomly.
Pair Corralation between UGI Corp and UGI
If you would invest 3,396 in UGI Corporation on November 9, 2024 and sell it today you would lose (195.00) from holding UGI Corporation or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UGI Corp Unit vs. UGI Corp.
Performance |
| Timeline |
| UGI Corp Unit |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| UGI Corporation |
UGI Corp and UGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UGI Corp and UGI
The main advantage of trading using opposite UGI Corp and UGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UGI Corp position performs unexpectedly, UGI 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 UGI will offset losses from the drop in UGI's long position.The idea behind UGI Corp Unit and UGI Corporation 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 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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