Correlation Between Unifique Telecomunicaes and SVB Financial

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

By analyzing existing cross correlation between Unifique Telecomunicaes SA and SVB Financial Group, you can compare the effects of market volatilities on Unifique Telecomunicaes and SVB Financial 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 Unifique Telecomunicaes with a short position of SVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifique Telecomunicaes and SVB Financial.

Diversification Opportunities for Unifique Telecomunicaes and SVB Financial

0.0

Correlation Coefficient

Unifique Telecomunicaes  SVB Financial

Pay attention - limited upside

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

Pair Corralation between Unifique Telecomunicaes and SVB Financial

If you would invest  335.00  in Unifique Telecomunicaes SA on December 31, 2024 and sell it today you would earn a total of  43.00  from holding Unifique Telecomunicaes SA or generate 12.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Unifique Telecomunicaes SA  vs.  SVB Financial Group

Unifique Telecomunicaes

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Unifique Telecomunicaes SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Unifique Telecomunicaes unveiled solid returns over the last few months and may actually be approaching a breakup point.

SVB Financial Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days SVB Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, SVB Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Unifique Telecomunicaes and SVB Financial

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

The idea behind Unifique Telecomunicaes SA and SVB Financial Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..