Correlation Between TuHURA Biosciences and United Parks

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

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

Diversification Opportunities for TuHURA Biosciences and United Parks

-0.28

Correlation Coefficient

TuHURA Biosciences  United Parks

Very good diversification

The 3 months correlation between TuHURA and United is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding TuHURA Biosciences and United Parks Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parks Resorts and TuHURA Biosciences 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 TuHURA Biosciences are associated (or correlated) with United Parks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parks Resorts has no effect on the direction of TuHURA Biosciences i.e., TuHURA Biosciences and United Parks go up and down completely randomly.

Pair Corralation between TuHURA Biosciences and United Parks

Given the investment horizon of 90 days TuHURA Biosciences is expected to generate 6.55 times more return on investment than United Parks. However, TuHURA Biosciences is 6.55 times more volatile than United Parks Resorts. It trades about 0.02 of its potential returns per unit of risk. United Parks Resorts is currently generating about 0.02 per unit of risk. If you would invest  527.00  in TuHURA Biosciences on October 7, 2024 and sell it today you would lose (78.00) from holding TuHURA Biosciences or give up 14.8% of portfolio value over 90 days.

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

TuHURA Biosciences  vs.  United Parks Resorts

TuHURA Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TuHURA Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

United Parks Resorts

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in United Parks Resorts are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating forward-looking signals, United Parks unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TuHURA Biosciences and United Parks

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

The idea behind TuHURA Biosciences and United Parks Resorts 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.