Correlation Between UBM Development and AT S
Can any of the company-specific risk be diversified away by investing in both UBM Development and AT S 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 UBM Development and AT S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBM Development AG and AT S Austria, you can compare the effects of market volatilities on UBM Development and AT S 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 UBM Development with a short position of AT S. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBM Development and AT S.
Diversification Opportunities for UBM Development and AT S
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between UBM and ATS is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding UBM Development AG and AT S Austria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AT S Austria and UBM Development 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 UBM Development AG are associated (or correlated) with AT S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AT S Austria has no effect on the direction of UBM Development i.e., UBM Development and AT S go up and down completely randomly.
Pair Corralation between UBM Development and AT S
Assuming the 90 days trading horizon UBM Development AG is expected to generate 0.33 times more return on investment than AT S. However, UBM Development AG is 2.99 times less risky than AT S. It trades about 0.13 of its potential returns per unit of risk. AT S Austria is currently generating about -0.01 per unit of risk. If you would invest 1,900 in UBM Development AG on December 2, 2024 and sell it today you would earn a total of 70.00 from holding UBM Development AG or generate 3.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
UBM Development AG vs. AT S Austria
Performance |
Timeline |
UBM Development AG |
AT S Austria |
UBM Development and AT S Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBM Development and AT S
The main advantage of trading using opposite UBM Development and AT S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBM Development position performs unexpectedly, AT S 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 AT S will offset losses from the drop in AT S's long position.UBM Development vs. CA Immobilien Anlagen | UBM Development vs. IMMOFINANZ AG | UBM Development vs. Wienerberger AG | UBM Development vs. Oesterr Post AG |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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