Correlation Between Universal Stainless and Aris Mining
Can any of the company-specific risk be diversified away by investing in both Universal Stainless and Aris Mining 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 Universal Stainless and Aris Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Stainless Alloy and Aris Mining, you can compare the effects of market volatilities on Universal Stainless and Aris Mining 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 Universal Stainless with a short position of Aris Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Stainless and Aris Mining.
Diversification Opportunities for Universal Stainless and Aris Mining
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Universal and Aris is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Universal Stainless Alloy and Aris Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aris Mining and Universal Stainless 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 Universal Stainless Alloy are associated (or correlated) with Aris Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aris Mining has no effect on the direction of Universal Stainless i.e., Universal Stainless and Aris Mining go up and down completely randomly.
Pair Corralation between Universal Stainless and Aris Mining
Given the investment horizon of 90 days Universal Stainless Alloy is expected to generate 0.69 times more return on investment than Aris Mining. However, Universal Stainless Alloy is 1.46 times less risky than Aris Mining. It trades about 0.09 of its potential returns per unit of risk. Aris Mining is currently generating about 0.0 per unit of risk. If you would invest 3,634 in Universal Stainless Alloy on November 3, 2024 and sell it today you would earn a total of 865.00 from holding Universal Stainless Alloy or generate 23.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.2% |
| Values | Daily Returns |
Universal Stainless Alloy vs. Aris Mining
Performance |
| Timeline |
| Universal Stainless Alloy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Aris Mining |
Universal Stainless and Aris Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Stainless and Aris Mining
The main advantage of trading using opposite Universal Stainless and Aris Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Stainless position performs unexpectedly, Aris Mining 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 Aris Mining will offset losses from the drop in Aris Mining's long position.| Universal Stainless vs. Olympic Steel | Universal Stainless vs. Outokumpu Oyj ADR | Universal Stainless vs. Usinas Siderurgicas de | Universal Stainless vs. POSCO Holdings |
| Aris Mining vs. Senmiao Technology | Aris Mining vs. Dine Brands Global | Aris Mining vs. Wingstop | Aris Mining vs. BJs Restaurants |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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