Correlation Between Unity Software and ACNB

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

By analyzing existing cross correlation between Unity Software and ACNB Corporation, you can compare the effects of market volatilities on Unity Software and ACNB 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 Unity Software with a short position of ACNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unity Software and ACNB.

Diversification Opportunities for Unity Software and ACNB

0.16

Correlation Coefficient

Unity Software  ACNB

Average diversification

The 3 months correlation between Unity and ACNB is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Unity Software and ACNB Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACNB and Unity Software 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 Unity Software are associated (or correlated) with ACNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACNB has no effect on the direction of Unity Software i.e., Unity Software and ACNB go up and down completely randomly.

Pair Corralation between Unity Software and ACNB

Taking into account the 90-day investment horizon Unity Software is expected to generate 3.13 times more return on investment than ACNB. However, Unity Software is 3.13 times more volatile than ACNB Corporation. It trades about 0.01 of its potential returns per unit of risk. ACNB Corporation is currently generating about 0.03 per unit of risk. If you would invest  2,236  in Unity Software on December 23, 2024 and sell it today you would lose (81.00) from holding Unity Software or give up 3.62% of portfolio value over 90 days.

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

Unity Software  vs.  ACNB Corp.

Unity Software

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Unity Software are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Unity Software is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

ACNB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ACNB Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ACNB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Unity Software and ACNB

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

The idea behind Unity Software and ACNB Corporation 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..