Correlation Between Uwharrie Capital and Santos
Can any of the company-specific risk be diversified away by investing in both Uwharrie Capital and Santos 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 Uwharrie Capital and Santos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwharrie Capital Corp and Santos Ltd ADR, you can compare the effects of market volatilities on Uwharrie Capital and Santos 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 Uwharrie Capital with a short position of Santos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwharrie Capital and Santos.
Diversification Opportunities for Uwharrie Capital and Santos
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Uwharrie and Santos is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp and Santos Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santos Ltd ADR and Uwharrie Capital 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 Uwharrie Capital Corp are associated (or correlated) with Santos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santos Ltd ADR has no effect on the direction of Uwharrie Capital i.e., Uwharrie Capital and Santos go up and down completely randomly.
Pair Corralation between Uwharrie Capital and Santos
If you would invest 746.00 in Uwharrie Capital Corp on September 1, 2024 and sell it today you would earn a total of 94.00 from holding Uwharrie Capital Corp or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Uwharrie Capital Corp vs. Santos Ltd ADR
Performance |
| Timeline |
| Uwharrie Capital Corp |
| Santos Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Uwharrie Capital and Santos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwharrie Capital and Santos
The main advantage of trading using opposite Uwharrie Capital and Santos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie Capital position performs unexpectedly, Santos 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 Santos will offset losses from the drop in Santos' long position.| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
| Santos vs. Aker BP ASA | Santos vs. Woodside Energy Group | Santos vs. APA Corporation | Santos vs. EQT Corporation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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