Correlation Between Admie Holding and Unibios Holdings

Can any of the company-specific risk be diversified away by investing in both Admie Holding and Unibios Holdings 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 Admie Holding and Unibios Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Admie Holding SA and Unibios Holdings SA, you can compare the effects of market volatilities on Admie Holding and Unibios Holdings 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 Admie Holding with a short position of Unibios Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Admie Holding and Unibios Holdings.

Diversification Opportunities for Admie Holding and Unibios Holdings

-0.68

Correlation Coefficient

Admie Holding  Unibios Holdings

Excellent diversification

The 3 months correlation between Admie and Unibios is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Admie Holding SA and Unibios Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibios Holdings and Admie Holding 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 Admie Holding SA are associated (or correlated) with Unibios Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibios Holdings has no effect on the direction of Admie Holding i.e., Admie Holding and Unibios Holdings go up and down completely randomly.

Pair Corralation between Admie Holding and Unibios Holdings

Assuming the 90 days trading horizon Admie Holding SA is expected to generate 0.52 times more return on investment than Unibios Holdings. However, Admie Holding SA is 1.92 times less risky than Unibios Holdings. It trades about 0.15 of its potential returns per unit of risk. Unibios Holdings SA is currently generating about -0.13 per unit of risk. If you would invest  219.00  in Admie Holding SA on September 13, 2024 and sell it today you would earn a total of  24.00  from holding Admie Holding SA or generate 10.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Admie Holding SA  vs.  Unibios Holdings SA

Admie Holding SA

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Admie Holding SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Admie Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Unibios Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Unibios Holdings SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Admie Holding and Unibios Holdings

The main advantage of trading using opposite Admie Holding and Unibios Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Admie Holding position performs unexpectedly, Unibios Holdings 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 Unibios Holdings will offset losses from the drop in Unibios Holdings' long position.

The idea behind Admie Holding SA and Unibios Holdings SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.