Correlation Between United Utilities and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both United Utilities and COMINTL BANK 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 United Utilities and COMINTL BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Utilities Group and COMINTL BANK ADR1, you can compare the effects of market volatilities on United Utilities and COMINTL BANK 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 United Utilities with a short position of COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Utilities and COMINTL BANK.
Diversification Opportunities for United Utilities and COMINTL BANK
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and COMINTL is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding United Utilities Group and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 and United Utilities 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 United Utilities Group are associated (or correlated) with COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of United Utilities i.e., United Utilities and COMINTL BANK go up and down completely randomly.
Pair Corralation between United Utilities and COMINTL BANK
Assuming the 90 days trading horizon United Utilities Group is expected to under-perform the COMINTL BANK. But the stock apears to be less risky and, when comparing its historical volatility, United Utilities Group is 1.49 times less risky than COMINTL BANK. The stock trades about -0.31 of its potential returns per unit of risk. The COMINTL BANK ADR1 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 127.00 in COMINTL BANK ADR1 on September 26, 2024 and sell it today you would earn a total of 4.00 from holding COMINTL BANK ADR1 or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Utilities Group vs. COMINTL BANK ADR1
Performance |
| Timeline |
| United Utilities |
| COMINTL BANK ADR1 |
United Utilities and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Utilities and COMINTL BANK
The main advantage of trading using opposite United Utilities and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Utilities position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| United Utilities vs. American Water Works | United Utilities vs. Aqua America | United Utilities vs. Companhia de Saneamento | United Utilities vs. Guangdong Investment Limited |
| COMINTL BANK vs. BNP Paribas SA | COMINTL BANK vs. DNB BANK ASA | COMINTL BANK vs. Deutsche Bank Aktiengesellschaft | COMINTL BANK vs. Socit Gnrale Socit |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |