Correlation Between Glenveagh Properties and Uniphar Group

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

By analyzing existing cross correlation between Glenveagh Properties PLC and Uniphar Group PLC, you can compare the effects of market volatilities on Glenveagh Properties and Uniphar 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 Glenveagh Properties with a short position of Uniphar Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glenveagh Properties and Uniphar Group.

Diversification Opportunities for Glenveagh Properties and Uniphar Group

-0.45

Correlation Coefficient

Glenveagh Properties  Uniphar Group

Very good diversification

The 3 months correlation between Glenveagh and Uniphar is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Glenveagh Properties PLC and Uniphar Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniphar Group PLC and Glenveagh Properties 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 Glenveagh Properties PLC are associated (or correlated) with Uniphar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniphar Group PLC has no effect on the direction of Glenveagh Properties i.e., Glenveagh Properties and Uniphar Group go up and down completely randomly.

Pair Corralation between Glenveagh Properties and Uniphar Group

Assuming the 90 days trading horizon Glenveagh Properties PLC is expected to under-perform the Uniphar Group. But the stock apears to be less risky and, when comparing its historical volatility, Glenveagh Properties PLC is 1.64 times less risky than Uniphar Group. The stock trades about -0.2 of its potential returns per unit of risk. The Uniphar Group PLC is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  230.00  in Uniphar Group PLC on August 30, 2024 and sell it today you would lose (10.00) from holding Uniphar Group PLC or give up 4.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Glenveagh Properties PLC  vs.  Uniphar Group PLC

Glenveagh Properties PLC

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Glenveagh Properties PLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Glenveagh Properties is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Uniphar Group PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Uniphar Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Glenveagh Properties and Uniphar Group

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

The idea behind Glenveagh Properties PLC and Uniphar Group PLC 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.