Correlation Between Sanyo Special and Upbound

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

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

Diversification Opportunities for Sanyo Special and Upbound

0.0

Correlation Coefficient

Sanyo Special  Upbound

Pay attention - limited upside

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

Pair Corralation between Sanyo Special and Upbound

Assuming the 90 days horizon Sanyo Special Steel is expected to generate 0.02 times more return on investment than Upbound. However, Sanyo Special Steel is 46.33 times less risky than Upbound. It trades about 0.07 of its potential returns per unit of risk. Upbound Group is currently generating about 0.0 per unit of risk. If you would invest  1,834  in Sanyo Special Steel on October 22, 2024 and sell it today you would earn a total of  13.00  from holding Sanyo Special Steel or generate 0.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.56%
Values	Daily Returns

Sanyo Special Steel  vs.  Upbound Group

Sanyo Special Steel

Risk-Adjusted Performance

0 of 100

Very Weak

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

Upbound Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Upbound Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting fundamental drivers, Upbound may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Sanyo Special and Upbound

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

The idea behind Sanyo Special Steel and Upbound Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.