Correlation Between Universal Technical and Aspen
Can any of the company-specific risk be diversified away by investing in both Universal Technical and Aspen 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 Technical and Aspen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Technical Institute and Aspen Group, you can compare the effects of market volatilities on Universal Technical and Aspen 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 Technical with a short position of Aspen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Technical and Aspen.
Diversification Opportunities for Universal Technical and Aspen
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Universal and Aspen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Universal Technical Institute and Aspen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Group and Universal Technical 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 Technical Institute are associated (or correlated) with Aspen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Group has no effect on the direction of Universal Technical i.e., Universal Technical and Aspen go up and down completely randomly.
Pair Corralation between Universal Technical and Aspen
If you would invest 1,679 in Universal Technical Institute on August 27, 2024 and sell it today you would earn a total of 859.00 from holding Universal Technical Institute or generate 51.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Universal Technical Institute vs. Aspen Group
Performance |
| Timeline |
| Universal Technical |
| Aspen Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Universal Technical and Aspen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Technical and Aspen
The main advantage of trading using opposite Universal Technical and Aspen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Technical position performs unexpectedly, Aspen 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 Aspen will offset losses from the drop in Aspen's long position.| Universal Technical vs. American Public Education | Universal Technical vs. Lincoln Educational Services | Universal Technical vs. Adtalem Global Education |
| Aspen vs. ATA Creativity Global | Aspen vs. American Public Education | Aspen vs. Skillful Craftsman Education | Aspen vs. China Liberal Education |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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