Correlation Between Robix Environmental and Universal Stainless

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

By analyzing existing cross correlation between Robix Environmental Technologies and Universal Stainless Alloy, you can compare the effects of market volatilities on Robix Environmental and Universal Stainless 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 Robix Environmental with a short position of Universal Stainless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robix Environmental and Universal Stainless.

Diversification Opportunities for Robix Environmental and Universal Stainless

0.0

Correlation Coefficient

Robix Environmental  Universal Stainless

Pay attention - limited upside

The 3 months correlation between Robix and Universal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Robix Environmental Technologi and Universal Stainless Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Stainless Alloy and Robix Environmental 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 Robix Environmental Technologies are associated (or correlated) with Universal Stainless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Stainless Alloy has no effect on the direction of Robix Environmental i.e., Robix Environmental and Universal Stainless go up and down completely randomly.

Pair Corralation between Robix Environmental and Universal Stainless

If you would invest  4,024  in Universal Stainless Alloy on October 8, 2024 and sell it today you would earn a total of  361.00  from holding Universal Stainless Alloy or generate 8.97% return on investment over 90 days.

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

Robix Environmental Technologi  vs.  Universal Stainless Alloy

Robix Environmental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Robix Environmental Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Robix Environmental is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Universal Stainless Alloy

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Stainless Alloy are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Universal Stainless may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Robix Environmental and Universal Stainless

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

The idea behind Robix Environmental Technologies and Universal Stainless Alloy 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.

Check out your portfolio center.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.