Correlation Between GROUP and Ultra Clean
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By analyzing existing cross correlation between GROUP 1 AUTOMOTIVE and Ultra Clean Holdings, you can compare the effects of market volatilities on GROUP and Ultra Clean 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 GROUP with a short position of Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of GROUP and Ultra Clean.
Diversification Opportunities for GROUP and Ultra Clean
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between GROUP and Ultra is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding GROUP 1 AUTOMOTIVE and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings and 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 GROUP 1 AUTOMOTIVE are associated (or correlated) with Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of GROUP i.e., GROUP and Ultra Clean go up and down completely randomly.
Pair Corralation between GROUP and Ultra Clean
Assuming the 90 days trading horizon GROUP 1 AUTOMOTIVE is expected to under-perform the Ultra Clean. But the bond apears to be less risky and, when comparing its historical volatility, GROUP 1 AUTOMOTIVE is 4.23 times less risky than Ultra Clean. The bond trades about -0.19 of its potential returns per unit of risk. The Ultra Clean Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,507 in Ultra Clean Holdings on August 25, 2024 and sell it today you would earn a total of 223.00 from holding Ultra Clean Holdings or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
GROUP 1 AUTOMOTIVE vs. Ultra Clean Holdings
Performance |
| Timeline |
| GROUP 1 AUTOMOTIVE |
| Ultra Clean Holdings |
GROUP and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GROUP and Ultra Clean
The main advantage of trading using opposite GROUP and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GROUP position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| GROUP vs. Ultra Clean Holdings | GROUP vs. RBC Bearings Incorporated | GROUP vs. Lincoln Electric Holdings | GROUP vs. BOS Better Online |
| Ultra Clean vs. Amtech Systems | Ultra Clean vs. Veeco Instruments | Ultra Clean vs. Cohu Inc | Ultra Clean vs. Onto Innovation |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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