Correlation Between UAC Global and Univanich Palm

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

By analyzing existing cross correlation between UAC Global Public and Univanich Palm Oil, you can compare the effects of market volatilities on UAC Global and Univanich Palm 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 UAC Global with a short position of Univanich Palm. Check out your portfolio center. Please also check ongoing floating volatility patterns of UAC Global and Univanich Palm.

Diversification Opportunities for UAC Global and Univanich Palm

0.0

Correlation Coefficient

UAC Global  Univanich Palm

Pay attention - limited upside

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

Pair Corralation between UAC Global and Univanich Palm

If you would invest  873.00  in Univanich Palm Oil on December 27, 2024 and sell it today you would earn a total of  52.00  from holding Univanich Palm Oil or generate 5.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

UAC Global Public  vs.  Univanich Palm Oil

UAC Global Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days UAC Global Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, UAC Global is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Univanich Palm Oil

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Univanich Palm Oil are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Univanich Palm may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with UAC Global and Univanich Palm

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

The idea behind UAC Global Public and Univanich Palm Oil 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.