Correlation Between Universal Stainless and Alvarion

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

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

Diversification Opportunities for Universal Stainless and Alvarion

0.0

Correlation Coefficient

Universal Stainless  Alvarion

Pay attention - limited upside

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

Pair Corralation between Universal Stainless and Alvarion

If you would invest  803.00  in Universal Stainless Alloy on October 11, 2024 and sell it today you would earn a total of  3,618  from holding Universal Stainless Alloy or generate 450.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.83%
Values	Daily Returns

Universal Stainless Alloy  vs.  Alvarion

Universal Stainless Alloy

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Stainless Alloy are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Universal Stainless may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Alvarion

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alvarion has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Alvarion is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Universal Stainless and Alvarion

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

The idea behind Universal Stainless Alloy and Alvarion 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..