Correlation Between UNION and Stagwell
Specify exactly 2 symbols:
By analyzing existing cross correlation between UNION PAC P and Stagwell, you can compare the effects of market volatilities on UNION and Stagwell 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 UNION with a short position of Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNION and Stagwell.
Diversification Opportunities for UNION and Stagwell
Good diversification
The 3 months correlation between UNION and Stagwell is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding UNION PAC P and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell and UNION 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 UNION PAC P are associated (or correlated) with Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of UNION i.e., UNION and Stagwell go up and down completely randomly.
Pair Corralation between UNION and Stagwell
Assuming the 90 days trading horizon UNION PAC P is expected to under-perform the Stagwell. But the bond apears to be less risky and, when comparing its historical volatility, UNION PAC P is 4.24 times less risky than Stagwell. The bond trades about -0.05 of its potential returns per unit of risk. The Stagwell is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 705.00 in Stagwell on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Stagwell or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
UNION PAC P vs. Stagwell
Performance |
| Timeline |
| UNION PAC P |
| Stagwell |
UNION and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNION and Stagwell
The main advantage of trading using opposite UNION and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNION position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| UNION vs. AEP TEX INC | UNION vs. US BANK NATIONAL | UNION vs. Applied Blockchain | UNION vs. BigBearai Holdings |
| Stagwell vs. Liberty Media | Stagwell vs. Atlanta Braves Holdings, | Stagwell vs. News Corp B | Stagwell vs. News Corp 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |