Correlation Between Universal Technical and Graham
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By analyzing existing cross correlation between Universal Technical Institute and Graham Holdings 575, you can compare the effects of market volatilities on Universal Technical and Graham 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 Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Technical and Graham.
Diversification Opportunities for Universal Technical and Graham
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Universal and Graham is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Universal Technical Institute and Graham Holdings 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 575 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 Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings 575 has no effect on the direction of Universal Technical i.e., Universal Technical and Graham go up and down completely randomly.
Pair Corralation between Universal Technical and Graham
Considering the 90-day investment horizon Universal Technical Institute is expected to generate 10.54 times more return on investment than Graham. However, Universal Technical is 10.54 times more volatile than Graham Holdings 575. It trades about 0.25 of its potential returns per unit of risk. Graham Holdings 575 is currently generating about -0.11 per unit of risk. If you would invest 2,062 in Universal Technical Institute on September 12, 2024 and sell it today you would earn a total of 550.00 from holding Universal Technical Institute or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Universal Technical Institute vs. Graham Holdings 575
Performance |
| Timeline |
| Universal Technical |
| Graham Holdings 575 |
Universal Technical and Graham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Technical and Graham
The main advantage of trading using opposite Universal Technical and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Technical position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.| Universal Technical vs. Vasta Platform | Universal Technical vs. Sunlands Technology Group | Universal Technical vs. Cogna Educacao SA | Universal Technical vs. American Public Education |
| Graham vs. Turning Point Brands | Graham vs. Vita Coco | Graham vs. Fomento Economico Mexicano | Graham vs. Thai Beverage PCL |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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