Correlation Between Urbana and Mount Logan

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

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

Diversification Opportunities for Urbana and Mount Logan

0.0

Correlation Coefficient

Urbana  Mount Logan

Pay attention - limited upside

The 3 months correlation between Urbana and Mount is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Urbana and Mount Logan Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mount Logan Capital and Urbana 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 Urbana are associated (or correlated) with Mount Logan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mount Logan Capital has no effect on the direction of Urbana i.e., Urbana and Mount Logan go up and down completely randomly.

Pair Corralation between Urbana and Mount Logan

If you would invest  409.00  in Urbana on November 28, 2024 and sell it today you would earn a total of  6.00  from holding Urbana or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Urbana  vs.  Mount Logan Capital

Urbana

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Urbana are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Urbana is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Mount Logan Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mount Logan Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mount Logan is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Urbana and Mount Logan

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

The idea behind Urbana and Mount Logan Capital 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.