Correlation Between UST Inc and Prenetics Global

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

By analyzing existing cross correlation between ProShares Ultra 7 10 and Prenetics Global, you can compare the effects of market volatilities on UST Inc and Prenetics Global 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 UST Inc with a short position of Prenetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of UST Inc and Prenetics Global.

Diversification Opportunities for UST Inc and Prenetics Global

-0.25

Correlation Coefficient

UST Inc  Prenetics Global

Very good diversification

The 3 months correlation between UST and Prenetics is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Ultra 7 10 and Prenetics Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prenetics Global and UST Inc 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 ProShares Ultra 7 10 are associated (or correlated) with Prenetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prenetics Global has no effect on the direction of UST Inc i.e., UST Inc and Prenetics Global go up and down completely randomly.

Pair Corralation between UST Inc and Prenetics Global

Considering the 90-day investment horizon ProShares Ultra 7 10 is expected to under-perform the Prenetics Global. But the etf apears to be less risky and, when comparing its historical volatility, ProShares Ultra 7 10 is 7.12 times less risky than Prenetics Global. The etf trades about -0.17 of its potential returns per unit of risk. The Prenetics Global is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  450.00  in Prenetics Global on September 13, 2024 and sell it today you would earn a total of  70.00  from holding Prenetics Global or generate 15.56% return on investment over 90 days.

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

ProShares Ultra 7 10  vs.  Prenetics Global

ProShares Ultra 7

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProShares Ultra 7 10 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Prenetics Global

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Prenetics Global are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Prenetics Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with UST Inc and Prenetics Global

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

The idea behind ProShares Ultra 7 10 and Prenetics Global 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.