Correlation Between Ubiquiti Networks and Rogers
Can any of the company-specific risk be diversified away by investing in both Ubiquiti Networks and Rogers 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 Ubiquiti Networks and Rogers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubiquiti Networks and Rogers, you can compare the effects of market volatilities on Ubiquiti Networks and Rogers 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 Ubiquiti Networks with a short position of Rogers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubiquiti Networks and Rogers.
Diversification Opportunities for Ubiquiti Networks and Rogers
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ubiquiti and Rogers is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ubiquiti Networks and Rogers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers and Ubiquiti Networks 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 Ubiquiti Networks are associated (or correlated) with Rogers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers has no effect on the direction of Ubiquiti Networks i.e., Ubiquiti Networks and Rogers go up and down completely randomly.
Pair Corralation between Ubiquiti Networks and Rogers
Allowing for the 90-day total investment horizon Ubiquiti Networks is expected to generate 1.42 times more return on investment than Rogers. However, Ubiquiti Networks is 1.42 times more volatile than Rogers. It trades about 0.24 of its potential returns per unit of risk. Rogers is currently generating about -0.03 per unit of risk. If you would invest 14,918 in Ubiquiti Networks on September 3, 2024 and sell it today you would earn a total of 20,249 from holding Ubiquiti Networks or generate 135.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubiquiti Networks vs. Rogers
Performance |
| Timeline |
| Ubiquiti Networks |
| Rogers |
Ubiquiti Networks and Rogers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubiquiti Networks and Rogers
The main advantage of trading using opposite Ubiquiti Networks and Rogers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubiquiti Networks position performs unexpectedly, Rogers 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 Rogers will offset losses from the drop in Rogers' long position.| Ubiquiti Networks vs. Credo Technology Group | Ubiquiti Networks vs. Zebra Technologies | Ubiquiti Networks vs. Ciena Corp | Ubiquiti Networks vs. Clearfield |
| Rogers vs. Marfrig Global Foods | Rogers vs. Philip Morris International | Rogers vs. Ambev SA ADR | Rogers vs. Scandinavian Tobacco Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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