Correlation Between UMF and Biopower Operations
Can any of the company-specific risk be diversified away by investing in both UMF and Biopower Operations 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 UMF and Biopower Operations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UMF Group and Biopower Operations Corp, you can compare the effects of market volatilities on UMF and Biopower Operations 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 UMF with a short position of Biopower Operations. Check out your portfolio center. Please also check ongoing floating volatility patterns of UMF and Biopower Operations.
Diversification Opportunities for UMF and Biopower Operations
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UMF and Biopower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UMF Group and Biopower Operations Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biopower Operations Corp and UMF 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 UMF Group are associated (or correlated) with Biopower Operations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biopower Operations Corp has no effect on the direction of UMF i.e., UMF and Biopower Operations go up and down completely randomly.
Pair Corralation between UMF and Biopower Operations
If you would invest 0.01 in Biopower Operations Corp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Biopower Operations Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
UMF Group vs. Biopower Operations Corp
Performance |
| Timeline |
| UMF Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Biopower Operations Corp |
UMF and Biopower Operations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UMF and Biopower Operations
The main advantage of trading using opposite UMF and Biopower Operations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UMF position performs unexpectedly, Biopower Operations 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 Biopower Operations will offset losses from the drop in Biopower Operations' long position.The idea behind UMF Group and Biopower Operations Corp 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.| Biopower Operations vs. A1 Group | Biopower Operations vs. Xtra Energy Corp | Biopower Operations vs. Gemz Corp | Biopower Operations vs. C2E Energy |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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