Correlation Between HUHUTECH International and NBCUNIVERSAL

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

By analyzing existing cross correlation between HUHUTECH International Group and NBCUNIVERSAL MEDIA LLC, you can compare the effects of market volatilities on HUHUTECH International and NBCUNIVERSAL 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 HUHUTECH International with a short position of NBCUNIVERSAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUHUTECH International and NBCUNIVERSAL.

Diversification Opportunities for HUHUTECH International and NBCUNIVERSAL

-0.43

Correlation Coefficient

HUHUTECH International  NBCUNIVERSAL

Very good diversification

The 3 months correlation between HUHUTECH and NBCUNIVERSAL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HUHUTECH International Group and NBCUNIVERSAL MEDIA LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBCUNIVERSAL MEDIA LLC and HUHUTECH International 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 HUHUTECH International Group are associated (or correlated) with NBCUNIVERSAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBCUNIVERSAL MEDIA LLC has no effect on the direction of HUHUTECH International i.e., HUHUTECH International and NBCUNIVERSAL go up and down completely randomly.

Pair Corralation between HUHUTECH International and NBCUNIVERSAL

Given the investment horizon of 90 days HUHUTECH International Group is expected to under-perform the NBCUNIVERSAL. In addition to that, HUHUTECH International is 2.76 times more volatile than NBCUNIVERSAL MEDIA LLC. It trades about -0.08 of its total potential returns per unit of risk. NBCUNIVERSAL MEDIA LLC is currently generating about -0.14 per unit of volatility. If you would invest  10,806  in NBCUNIVERSAL MEDIA LLC on October 9, 2024 and sell it today you would lose (205.00) from holding NBCUNIVERSAL MEDIA LLC or give up 1.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	47.37%
Values	Daily Returns

HUHUTECH International Group  vs.  NBCUNIVERSAL MEDIA LLC

HUHUTECH International

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HUHUTECH International Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical indicators, HUHUTECH International unveiled solid returns over the last few months and may actually be approaching a breakup point.

NBCUNIVERSAL MEDIA LLC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with HUHUTECH International and NBCUNIVERSAL

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

The idea behind HUHUTECH International Group and NBCUNIVERSAL MEDIA LLC 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.