Correlation Between US Nuclear and Puration

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

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

Diversification Opportunities for US Nuclear and Puration

0.0

Correlation Coefficient

US Nuclear  Puration

Pay attention - limited upside

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

Pair Corralation between US Nuclear and Puration

If you would invest  14.00  in US Nuclear Corp on September 27, 2024 and sell it today you would lose (6.50) from holding US Nuclear Corp or give up 46.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

US Nuclear Corp  vs.  Puration

US Nuclear Corp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in US Nuclear Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, US Nuclear exhibited solid returns over the last few months and may actually be approaching a breakup point.

Puration

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Puration has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Puration is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with US Nuclear and Puration

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

The idea behind US Nuclear Corp and Puration 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.