Correlation Between Unisys and Globant SA

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

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

Diversification Opportunities for Unisys and Globant SA

0.95

Correlation Coefficient

Unisys  Globant SA

Almost no diversification

The 3 months correlation between Unisys and Globant is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Unisys and Globant SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globant SA and Unisys 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 Unisys are associated (or correlated) with Globant SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globant SA has no effect on the direction of Unisys i.e., Unisys and Globant SA go up and down completely randomly.

Pair Corralation between Unisys and Globant SA

Considering the 90-day investment horizon Unisys is expected to generate 0.93 times more return on investment than Globant SA. However, Unisys is 1.08 times less risky than Globant SA. It trades about -0.12 of its potential returns per unit of risk. Globant SA is currently generating about -0.21 per unit of risk. If you would invest  646.00  in Unisys on December 29, 2024 and sell it today you would lose (184.00) from holding Unisys or give up 28.48% of portfolio value over 90 days.

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

Unisys  vs.  Globant SA

Unisys

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unisys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Globant SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Globant SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Unisys and Globant SA

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

The idea behind Unisys and Globant SA 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 Stocks Directory module to find actively traded stocks across global markets.