Correlation Between Unifi and O I

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

By analyzing existing cross correlation between Unifi Inc and O I Glass, you can compare the effects of market volatilities on Unifi and O I 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 Unifi with a short position of O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unifi and O I.

Diversification Opportunities for Unifi and O I

0.4

Correlation Coefficient

Unifi  O I

Very weak diversification

The 3 months correlation between Unifi and O I is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Unifi Inc and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass and Unifi 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 Unifi Inc are associated (or correlated) with O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of Unifi i.e., Unifi and O I go up and down completely randomly.

Pair Corralation between Unifi and O I

Considering the 90-day investment horizon Unifi Inc is expected to generate 0.73 times more return on investment than O I. However, Unifi Inc is 1.36 times less risky than O I. It trades about -0.07 of its potential returns per unit of risk. O I Glass is currently generating about -0.25 per unit of risk. If you would invest  563.00  in Unifi Inc on September 17, 2024 and sell it today you would lose (10.00) from holding Unifi Inc or give up 1.78% of portfolio value over 90 days.

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

Unifi Inc  vs.  O I Glass

Unifi Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Unifi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

O I Glass

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days O I Glass has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Unifi and O I

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

The idea behind Unifi Inc and O I Glass 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.