Correlation Between Universal and SENSATA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Universal and SENSATA TECHNOLOGIES INC, you can compare the effects of market volatilities on Universal and SENSATA 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 SENSATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal and SENSATA.
Diversification Opportunities for Universal and SENSATA
Excellent diversification
The 3 months correlation between Universal and SENSATA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Universal and SENSATA TECHNOLOGIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENSATA TECHNOLOGIES INC 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 SENSATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENSATA TECHNOLOGIES INC has no effect on the direction of Universal i.e., Universal and SENSATA go up and down completely randomly.
Pair Corralation between Universal and SENSATA
Considering the 90-day investment horizon Universal is expected to generate 42.25 times less return on investment than SENSATA. But when comparing it to its historical volatility, Universal is 32.83 times less risky than SENSATA. It trades about 0.04 of its potential returns per unit of risk. SENSATA TECHNOLOGIES INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,597 in SENSATA TECHNOLOGIES INC on August 31, 2024 and sell it today you would earn a total of 23.00 from holding SENSATA TECHNOLOGIES INC or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Universal vs. SENSATA TECHNOLOGIES INC
Performance |
| Timeline |
| Universal |
| SENSATA TECHNOLOGIES INC |
Universal and SENSATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal and SENSATA
The main advantage of trading using opposite Universal and SENSATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal position performs unexpectedly, SENSATA 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 SENSATA will offset losses from the drop in SENSATA's long position.| Universal vs. Imperial Brands PLC | Universal vs. Japan Tobacco ADR | Universal vs. Philip Morris International | Universal vs. Turning Point Brands |
| SENSATA vs. AEP TEX INC | SENSATA vs. US BANK NATIONAL | SENSATA vs. FactSet Research Systems | SENSATA vs. Golden Agri Resources |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |