Correlation Between Unifiedpost Group and Crescent
Can any of the company-specific risk be diversified away by investing in both Unifiedpost Group and Crescent 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 Unifiedpost Group and Crescent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unifiedpost Group SA and Crescent NV, you can compare the effects of market volatilities on Unifiedpost Group and Crescent 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 Unifiedpost Group with a short position of Crescent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifiedpost Group and Crescent.
Diversification Opportunities for Unifiedpost Group and Crescent
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unifiedpost and Crescent is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Unifiedpost Group SA and Crescent NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent NV and Unifiedpost Group 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 Unifiedpost Group SA are associated (or correlated) with Crescent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent NV has no effect on the direction of Unifiedpost Group i.e., Unifiedpost Group and Crescent go up and down completely randomly.
Pair Corralation between Unifiedpost Group and Crescent
Assuming the 90 days trading horizon Unifiedpost Group SA is expected to generate 0.73 times more return on investment than Crescent. However, Unifiedpost Group SA is 1.36 times less risky than Crescent. It trades about 0.0 of its potential returns per unit of risk. Crescent NV is currently generating about -0.04 per unit of risk. If you would invest 340.00 in Unifiedpost Group SA on September 12, 2024 and sell it today you would lose (5.00) from holding Unifiedpost Group SA or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unifiedpost Group SA vs. Crescent NV
Performance |
| Timeline |
| Unifiedpost Group |
| Crescent NV |
Unifiedpost Group and Crescent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unifiedpost Group and Crescent
The main advantage of trading using opposite Unifiedpost Group and Crescent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unifiedpost Group position performs unexpectedly, Crescent 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 Crescent will offset losses from the drop in Crescent's long position.| Unifiedpost Group vs. Exmar NV | Unifiedpost Group vs. Ontex Group NV | Unifiedpost Group vs. X Fab Silicon | Unifiedpost Group vs. VGP NV |
| Crescent vs. AGFA Gevaert NV | Crescent vs. Nyrstar NV | Crescent vs. Exmar NV | Crescent vs. EVS Broadcast Equipment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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