Correlation Between Uniphar Group and Nordnet One

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

By analyzing existing cross correlation between Uniphar Group PLC and Nordnet One Forsiktig, you can compare the effects of market volatilities on Uniphar Group and Nordnet One 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 Uniphar Group with a short position of Nordnet One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniphar Group and Nordnet One.

Diversification Opportunities for Uniphar Group and Nordnet One

-0.71

Correlation Coefficient

Uniphar Group  Nordnet One

Pay attention - limited upside

The 3 months correlation between Uniphar and Nordnet is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Uniphar Group PLC and Nordnet One Forsiktig in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordnet One Forsiktig and Uniphar Group 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 Uniphar Group PLC are associated (or correlated) with Nordnet One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordnet One Forsiktig has no effect on the direction of Uniphar Group i.e., Uniphar Group and Nordnet One go up and down completely randomly.

Pair Corralation between Uniphar Group and Nordnet One

Assuming the 90 days trading horizon Uniphar Group PLC is expected to under-perform the Nordnet One. In addition to that, Uniphar Group is 8.36 times more volatile than Nordnet One Forsiktig. It trades about -0.19 of its total potential returns per unit of risk. Nordnet One Forsiktig is currently generating about 0.21 per unit of volatility. If you would invest  12,268  in Nordnet One Forsiktig on September 17, 2024 and sell it today you would earn a total of  347.00  from holding Nordnet One Forsiktig or generate 2.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.38%
Values	Daily Returns

Uniphar Group PLC  vs.  Nordnet One Forsiktig

Uniphar Group PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Uniphar Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Nordnet One Forsiktig

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nordnet One Forsiktig are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable basic indicators, Nordnet One is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Uniphar Group and Nordnet One

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

The idea behind Uniphar Group PLC and Nordnet One Forsiktig 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..