Correlation Between BlackBerry and U BX

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

By analyzing existing cross correlation between BlackBerry and U BX Technology Ltd, you can compare the effects of market volatilities on BlackBerry and U BX 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 BlackBerry with a short position of U BX. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackBerry and U BX.

Diversification Opportunities for BlackBerry and U BX

0.71

Correlation Coefficient

BlackBerry  U BX

Poor diversification

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

Pair Corralation between BlackBerry and U BX

Allowing for the 90-day total investment horizon BlackBerry is expected to generate 19.08 times less return on investment than U BX. But when comparing it to its historical volatility, BlackBerry is 26.79 times less risky than U BX. It trades about 0.16 of its potential returns per unit of risk. U BX Technology Ltd is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  68.00  in U BX Technology Ltd on September 21, 2024 and sell it today you would earn a total of  271.00  from holding U BX Technology Ltd or generate 398.53% return on investment over 90 days.

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

BlackBerry  vs.  U BX Technology Ltd

BlackBerry

Risk-Adjusted Performance

12 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BlackBerry are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental drivers, BlackBerry sustained solid returns over the last few months and may actually be approaching a breakup point.

U BX Technology

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in U BX Technology Ltd are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, U BX reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BlackBerry and U BX

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

The idea behind BlackBerry and U BX Technology Ltd 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.