Correlation Between Unique Mining and Ubis Public

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

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

Diversification Opportunities for Unique Mining and Ubis Public

0.85

Correlation Coefficient

Unique Mining  Ubis Public

Very poor diversification

The 3 months correlation between Unique and Ubis is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Unique Mining Services and Ubis Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubis Public and Unique Mining 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 Unique Mining Services are associated (or correlated) with Ubis Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubis Public has no effect on the direction of Unique Mining i.e., Unique Mining and Ubis Public go up and down completely randomly.

Pair Corralation between Unique Mining and Ubis Public

Assuming the 90 days trading horizon Unique Mining Services is expected to generate 1.92 times more return on investment than Ubis Public. However, Unique Mining is 1.92 times more volatile than Ubis Public. It trades about -0.1 of its potential returns per unit of risk. Ubis Public is currently generating about -0.28 per unit of risk. If you would invest  41.00  in Unique Mining Services on October 15, 2024 and sell it today you would lose (3.00) from holding Unique Mining Services or give up 7.32% of portfolio value over 90 days.

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

Unique Mining Services  vs.  Ubis Public

Unique Mining Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Unique Mining Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ubis Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ubis Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Unique Mining and Ubis Public

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

The idea behind Unique Mining Services and Ubis Public 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.