Correlation Between Mincon Group and Uniphar Group

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

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

Diversification Opportunities for Mincon Group and Uniphar Group

0.0

Correlation Coefficient

Mincon Group  Uniphar Group

Pay attention - limited upside

The 3 months correlation between Mincon and Uniphar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mincon Group 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 Mincon Group 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 Mincon Group 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 Mincon Group i.e., Mincon Group and Uniphar Group go up and down completely randomly.

Pair Corralation between Mincon Group and Uniphar Group

If you would invest  212.00  in Uniphar Group PLC on December 30, 2024 and sell it today you would earn a total of  67.00  from holding Uniphar Group PLC or generate 31.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Mincon Group plc  vs.  Uniphar Group PLC

Mincon Group plc

Risk-Adjusted Performance

Insignificant

Over the last 90 days Mincon Group plc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Mincon Group is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Uniphar Group PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uniphar Group PLC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Uniphar Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mincon Group and Uniphar Group

The main advantage of trading using opposite Mincon Group and Uniphar Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mincon Group 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 Mincon Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.