Correlation Between Universal Display and Cross Country
Can any of the company-specific risk be diversified away by investing in both Universal Display and Cross Country 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 Display and Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Display and Cross Country Healthcare, you can compare the effects of market volatilities on Universal Display and Cross Country 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 Display with a short position of Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and Cross Country.
Diversification Opportunities for Universal Display and Cross Country
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Universal and Cross is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare and Universal Display 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 Display are associated (or correlated) with Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Universal Display i.e., Universal Display and Cross Country go up and down completely randomly.
Pair Corralation between Universal Display and Cross Country
Assuming the 90 days horizon Universal Display is expected to under-perform the Cross Country. But the stock apears to be less risky and, when comparing its historical volatility, Universal Display is 1.86 times less risky than Cross Country. The stock trades about -0.01 of its potential returns per unit of risk. The Cross Country Healthcare is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,020 in Cross Country Healthcare on September 14, 2024 and sell it today you would lose (300.00) from holding Cross Country Healthcare or give up 14.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Universal Display vs. Cross Country Healthcare
Performance |
| Timeline |
| Universal Display |
| Cross Country Healthcare |
Universal Display and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Display and Cross Country
The main advantage of trading using opposite Universal Display and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| Universal Display vs. Applied Materials | Universal Display vs. Tokyo Electron Limited | Universal Display vs. Superior Plus Corp | Universal Display vs. SIVERS SEMICONDUCTORS AB |
| Cross Country vs. Robert Half International | Cross Country vs. Insperity | Cross Country vs. ASGN Incorporated | Cross Country vs. ManpowerGroup |
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.
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