Correlation Between CHARTER and Universal Display
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By analyzing existing cross correlation between CHARTER MUNICATIONS OPER and Universal Display, you can compare the effects of market volatilities on CHARTER and Universal Display 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 CHARTER with a short position of Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHARTER and Universal Display.
Diversification Opportunities for CHARTER and Universal Display
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHARTER and Universal is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CHARTER MUNICATIONS OPER and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display and CHARTER 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 CHARTER MUNICATIONS OPER are associated (or correlated) with Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of CHARTER i.e., CHARTER and Universal Display go up and down completely randomly.
Pair Corralation between CHARTER and Universal Display
Assuming the 90 days trading horizon CHARTER MUNICATIONS OPER is expected to generate 1.59 times more return on investment than Universal Display. However, CHARTER is 1.59 times more volatile than Universal Display. It trades about -0.13 of its potential returns per unit of risk. Universal Display is currently generating about -0.25 per unit of risk. If you would invest 8,131 in CHARTER MUNICATIONS OPER on September 2, 2024 and sell it today you would lose (638.00) from holding CHARTER MUNICATIONS OPER or give up 7.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHARTER MUNICATIONS OPER vs. Universal Display
Performance |
| Timeline |
| CHARTER MUNICATIONS OPER |
| Universal Display |
CHARTER and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHARTER and Universal Display
The main advantage of trading using opposite CHARTER and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHARTER position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| CHARTER vs. Beyond Meat | CHARTER vs. Bridgford Foods | CHARTER vs. Radcom | CHARTER vs. National Beverage Corp |
| Universal Display vs. Plexus Corp | Universal Display vs. Methode Electronics | Universal Display vs. Benchmark Electronics | Universal Display vs. Bel Fuse A |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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