Correlation Between Universal and FMEGR
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By analyzing existing cross correlation between Universal and FMEGR 2375 16 FEB 31, you can compare the effects of market volatilities on Universal and FMEGR 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 with a short position of FMEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal and FMEGR.
Diversification Opportunities for Universal and FMEGR
Very good diversification
The 3 months correlation between Universal and FMEGR is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Universal and FMEGR 2375 16 FEB 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMEGR 2375 16 and Universal 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 are associated (or correlated) with FMEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMEGR 2375 16 has no effect on the direction of Universal i.e., Universal and FMEGR go up and down completely randomly.
Pair Corralation between Universal and FMEGR
Considering the 90-day investment horizon Universal is expected to generate 4.13 times more return on investment than FMEGR. However, Universal is 4.13 times more volatile than FMEGR 2375 16 FEB 31. It trades about 0.34 of its potential returns per unit of risk. FMEGR 2375 16 FEB 31 is currently generating about 0.27 per unit of risk. If you would invest 5,135 in Universal on September 4, 2024 and sell it today you would earn a total of 583.00 from holding Universal or generate 11.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Universal vs. FMEGR 2375 16 FEB 31
Performance |
| Timeline |
| Universal |
| FMEGR 2375 16 |
Universal and FMEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal and FMEGR
The main advantage of trading using opposite Universal and FMEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal position performs unexpectedly, FMEGR 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 FMEGR will offset losses from the drop in FMEGR's long position.| Universal vs. Imperial Brands PLC | Universal vs. Japan Tobacco ADR | Universal vs. Philip Morris International | Universal vs. Turning Point Brands |
| FMEGR vs. Acco Brands | FMEGR vs. Coursera | FMEGR vs. Universal Technical Institute | FMEGR vs. Zane Interactive Publishing |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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