Correlation Between PT UBC and Yelooo Integra

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

By analyzing existing cross correlation between PT UBC Medical and Yelooo Integra Datanet, you can compare the effects of market volatilities on PT UBC and Yelooo Integra 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 PT UBC with a short position of Yelooo Integra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT UBC and Yelooo Integra.

Diversification Opportunities for PT UBC and Yelooo Integra

0.35

Correlation Coefficient

PT UBC  Yelooo Integra

Weak diversification

The 3 months correlation between LABS and Yelooo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding PT UBC Medical and Yelooo Integra Datanet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelooo Integra Datanet and PT UBC 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 PT UBC Medical are associated (or correlated) with Yelooo Integra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelooo Integra Datanet has no effect on the direction of PT UBC i.e., PT UBC and Yelooo Integra go up and down completely randomly.

Pair Corralation between PT UBC and Yelooo Integra

Assuming the 90 days trading horizon PT UBC Medical is expected to generate 0.39 times more return on investment than Yelooo Integra. However, PT UBC Medical is 2.54 times less risky than Yelooo Integra. It trades about -0.05 of its potential returns per unit of risk. Yelooo Integra Datanet is currently generating about -0.05 per unit of risk. If you would invest  14,000  in PT UBC Medical on September 3, 2024 and sell it today you would lose (800.00) from holding PT UBC Medical or give up 5.71% of portfolio value over 90 days.

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

PT UBC Medical  vs.  Yelooo Integra Datanet

PT UBC Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT UBC Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, PT UBC is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Yelooo Integra Datanet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yelooo Integra Datanet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with PT UBC and Yelooo Integra

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

The idea behind PT UBC Medical and Yelooo Integra Datanet 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.