Correlation Between Unique Mining and Winner Group

Can any of the company-specific risk be diversified away by investing in both Unique Mining and Winner Group 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 Winner Group 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 Winner Group Enterprise, you can compare the effects of market volatilities on Unique Mining and Winner Group 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 Winner Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unique Mining and Winner Group.

Diversification Opportunities for Unique Mining and Winner Group

0.52

Correlation Coefficient

Unique Mining  Winner Group

Very weak diversification

The 3 months correlation between Unique and Winner is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Unique Mining Services and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise 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 Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of Unique Mining i.e., Unique Mining and Winner Group go up and down completely randomly.

Pair Corralation between Unique Mining and Winner Group

Assuming the 90 days trading horizon Unique Mining Services is expected to under-perform the Winner Group. In addition to that, Unique Mining is 8.53 times more volatile than Winner Group Enterprise. It trades about -0.06 of its total potential returns per unit of risk. Winner Group Enterprise is currently generating about -0.13 per unit of volatility. If you would invest  214.00  in Winner Group Enterprise on September 27, 2024 and sell it today you would lose (14.00) from holding Winner Group Enterprise or give up 6.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Unique Mining Services  vs.  Winner Group Enterprise

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 January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Winner Group Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Winner Group Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Unique Mining and Winner Group

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

The idea behind Unique Mining Services and Winner Group Enterprise 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.

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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.