Correlation Between Triad Group and United Internet
Can any of the company-specific risk be diversified away by investing in both Triad Group and United Internet 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 Triad Group and United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and United Internet AG, you can compare the effects of market volatilities on Triad Group and United Internet 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 Triad Group with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and United Internet.
Diversification Opportunities for Triad Group and United Internet
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Triad and United is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group PLC and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and Triad 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 Triad Group PLC are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Triad Group i.e., Triad Group and United Internet go up and down completely randomly.
Pair Corralation between Triad Group and United Internet
Assuming the 90 days trading horizon Triad Group PLC is expected to generate 1.07 times more return on investment than United Internet. However, Triad Group is 1.07 times more volatile than United Internet AG. It trades about 0.12 of its potential returns per unit of risk. United Internet AG is currently generating about -0.01 per unit of risk. If you would invest 7,767 in Triad Group PLC on September 23, 2024 and sell it today you would earn a total of 20,233 from holding Triad Group PLC or generate 260.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Triad Group PLC vs. United Internet AG
Performance |
Timeline |
Triad Group PLC |
United Internet AG |
Triad Group and United Internet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Triad Group and United Internet
The main advantage of trading using opposite Triad Group and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.Triad Group vs. Rockfire Resources plc | Triad Group vs. Tlou Energy | Triad Group vs. Ikigai Ventures | Triad Group vs. Falcon Oil Gas |
United Internet vs. Uniper SE | United Internet vs. Mulberry Group PLC | United Internet vs. London Security Plc | United Internet vs. Triad Group PLC |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |