Correlation Between Univest Pennsylvania and 207597EG6
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By analyzing existing cross correlation between Univest Pennsylvania and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Univest Pennsylvania and 207597EG6 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 Univest Pennsylvania with a short position of 207597EG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univest Pennsylvania and 207597EG6.
Diversification Opportunities for Univest Pennsylvania and 207597EG6
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Univest and 207597EG6 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Univest Pennsylvania and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR and Univest Pennsylvania 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 Univest Pennsylvania are associated (or correlated) with 207597EG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Univest Pennsylvania i.e., Univest Pennsylvania and 207597EG6 go up and down completely randomly.
Pair Corralation between Univest Pennsylvania and 207597EG6
Given the investment horizon of 90 days Univest Pennsylvania is expected to under-perform the 207597EG6. But the stock apears to be less risky and, when comparing its historical volatility, Univest Pennsylvania is 1.63 times less risky than 207597EG6. The stock trades about -0.01 of its potential returns per unit of risk. The CONNECTICUT LT PWR is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 8,539 in CONNECTICUT LT PWR on September 12, 2024 and sell it today you would earn a total of 538.00 from holding CONNECTICUT LT PWR or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Univest Pennsylvania vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Univest Pennsylvania |
| CONNECTICUT LT PWR |
Univest Pennsylvania and 207597EG6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univest Pennsylvania and 207597EG6
The main advantage of trading using opposite Univest Pennsylvania and 207597EG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univest Pennsylvania position performs unexpectedly, 207597EG6 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 207597EG6 will offset losses from the drop in 207597EG6's long position.| Univest Pennsylvania vs. JPMorgan Chase Co | Univest Pennsylvania vs. Citigroup | Univest Pennsylvania vs. Wells Fargo | Univest Pennsylvania vs. Toronto Dominion Bank |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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