Correlation Between UET United and Chevron

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

By analyzing existing cross correlation between UET United Electronic and Chevron, you can compare the effects of market volatilities on UET United and Chevron 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 UET United with a short position of Chevron. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and Chevron.

Diversification Opportunities for UET United and Chevron

0.0

Correlation Coefficient

UET United  Chevron

Pay attention - limited upside

The 3 months correlation between UET and Chevron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic and Chevron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron and UET United 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 UET United Electronic are associated (or correlated) with Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of UET United i.e., UET United and Chevron go up and down completely randomly.

Pair Corralation between UET United and Chevron

If you would invest  88.00  in UET United Electronic on December 22, 2024 and sell it today you would earn a total of  5.00  from holding UET United Electronic or generate 5.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

UET United Electronic  vs.  Chevron

UET United Electronic

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in UET United Electronic are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, UET United may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Chevron

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Chevron may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with UET United and Chevron

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

The idea behind UET United Electronic and Chevron 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..