Correlation Between Workspace Group and Unite Group
Can any of the company-specific risk be diversified away by investing in both Workspace Group and Unite Group 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 Workspace Group and Unite Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workspace Group PLC and Unite Group PLC, you can compare the effects of market volatilities on Workspace Group and Unite Group 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 Workspace Group with a short position of Unite Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workspace Group and Unite Group.
Diversification Opportunities for Workspace Group and Unite Group
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Workspace and Unite is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Workspace Group PLC and Unite Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unite Group PLC and Workspace Group 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 Workspace Group PLC are associated (or correlated) with Unite Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unite Group PLC has no effect on the direction of Workspace Group i.e., Workspace Group and Unite Group go up and down completely randomly.
Pair Corralation between Workspace Group and Unite Group
Assuming the 90 days trading horizon Workspace Group PLC is expected to under-perform the Unite Group. In addition to that, Workspace Group is 1.75 times more volatile than Unite Group PLC. It trades about -0.15 of its total potential returns per unit of risk. Unite Group PLC is currently generating about -0.16 per unit of volatility. If you would invest 91,050 in Unite Group PLC on August 28, 2024 and sell it today you would lose (3,750) from holding Unite Group PLC or give up 4.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workspace Group PLC vs. Unite Group PLC
Performance |
| Timeline |
| Workspace Group PLC |
| Unite Group PLC |
Workspace Group and Unite Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workspace Group and Unite Group
The main advantage of trading using opposite Workspace Group and Unite Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workspace Group position performs unexpectedly, Unite Group 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 Unite Group will offset losses from the drop in Unite Group's long position.| Workspace Group vs. Gear4music Plc | Workspace Group vs. Blackrock World Mining | Workspace Group vs. Bisichi Mining PLC | Workspace Group vs. Panther Metals PLC |
| Unite Group vs. American Homes 4 | Unite Group vs. Pets at Home | Unite Group vs. International Biotechnology Trust | Unite Group vs. Dentsply Sirona |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |