Correlation Between Multi Units and UST Inc
Can any of the company-specific risk be diversified away by investing in both Multi Units and UST Inc 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 Multi Units and UST Inc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units France and Multi Units Luxembourg , you can compare the effects of market volatilities on Multi Units and UST Inc 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 Multi Units with a short position of UST Inc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and UST Inc.
Diversification Opportunities for Multi Units and UST Inc
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multi and UST is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units France and Multi Units Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units Luxembourg and Multi Units 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 Multi Units France are associated (or correlated) with UST Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units Luxembourg has no effect on the direction of Multi Units i.e., Multi Units and UST Inc go up and down completely randomly.
Pair Corralation between Multi Units and UST Inc
Assuming the 90 days trading horizon Multi Units is expected to generate 1.97 times less return on investment than UST Inc. But when comparing it to its historical volatility, Multi Units France is 1.41 times less risky than UST Inc. It trades about 0.08 of its potential returns per unit of risk. Multi Units Luxembourg is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,387 in Multi Units Luxembourg on September 2, 2024 and sell it today you would earn a total of 3,630 from holding Multi Units Luxembourg or generate 82.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Units France vs. Multi Units Luxembourg
Performance |
| Timeline |
| Multi Units France |
| Multi Units Luxembourg |
Multi Units and UST Inc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and UST Inc
The main advantage of trading using opposite Multi Units and UST Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units position performs unexpectedly, UST Inc 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 UST Inc will offset losses from the drop in UST Inc's long position.| Multi Units vs. Manitou BF SA | Multi Units vs. Granite 3x LVMH | Multi Units vs. 21Shares Polkadot ETP | Multi Units vs. Ekinops SA |
| UST Inc vs. Manitou BF SA | UST Inc vs. Granite 3x LVMH | UST Inc vs. 21Shares Polkadot ETP | UST Inc vs. Ekinops SA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |