Correlation Between IAnthus Capital and Ubiquitech Software

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

By analyzing existing cross correlation between iAnthus Capital Holdings and Ubiquitech Software, you can compare the effects of market volatilities on IAnthus Capital and Ubiquitech Software 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 IAnthus Capital with a short position of Ubiquitech Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAnthus Capital and Ubiquitech Software.

Diversification Opportunities for IAnthus Capital and Ubiquitech Software

0.32

Correlation Coefficient

IAnthus Capital  Ubiquitech Software

Weak diversification

The 3 months correlation between IAnthus and Ubiquitech is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding iAnthus Capital Holdings and Ubiquitech Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubiquitech Software and IAnthus Capital 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 iAnthus Capital Holdings are associated (or correlated) with Ubiquitech Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubiquitech Software has no effect on the direction of IAnthus Capital i.e., IAnthus Capital and Ubiquitech Software go up and down completely randomly.

Pair Corralation between IAnthus Capital and Ubiquitech Software

Assuming the 90 days horizon IAnthus Capital is expected to generate 33.6 times less return on investment than Ubiquitech Software. But when comparing it to its historical volatility, iAnthus Capital Holdings is 19.32 times less risky than Ubiquitech Software. It trades about 0.2 of its potential returns per unit of risk. Ubiquitech Software is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Ubiquitech Software on October 27, 2024 and sell it today you would lose (0.01) from holding Ubiquitech Software or give up 100.0% of portfolio value over 90 days.

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

iAnthus Capital Holdings  vs.  Ubiquitech Software

iAnthus Capital Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in iAnthus Capital Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, IAnthus Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Ubiquitech Software

Risk-Adjusted Performance

30 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Ubiquitech Software are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Ubiquitech Software unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IAnthus Capital and Ubiquitech Software

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

The idea behind iAnthus Capital Holdings and Ubiquitech Software 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.