Correlation Between Ubis Public and Unique Mining

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

By analyzing existing cross correlation between Ubis Public and Unique Mining Services, you can compare the effects of market volatilities on Ubis Public and Unique Mining 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 Ubis Public with a short position of Unique Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubis Public and Unique Mining.

Diversification Opportunities for Ubis Public and Unique Mining

0.58

Correlation Coefficient

Ubis Public  Unique Mining

Very weak diversification

The 3 months correlation between Ubis and Unique is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ubis Public and Unique Mining Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unique Mining Services and Ubis Public 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 Ubis Public are associated (or correlated) with Unique Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unique Mining Services has no effect on the direction of Ubis Public i.e., Ubis Public and Unique Mining go up and down completely randomly.

Pair Corralation between Ubis Public and Unique Mining

Assuming the 90 days trading horizon Ubis Public is expected to generate 0.31 times more return on investment than Unique Mining. However, Ubis Public is 3.17 times less risky than Unique Mining. It trades about -0.04 of its potential returns per unit of risk. Unique Mining Services is currently generating about -0.07 per unit of risk. If you would invest  181.00  in Ubis Public on September 16, 2024 and sell it today you would lose (12.00) from holding Ubis Public or give up 6.63% of portfolio value over 90 days.

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

Ubis Public  vs.  Unique Mining Services

Ubis Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ubis Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Ubis Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Unique Mining Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Unique Mining Services has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Ubis Public and Unique Mining

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

The idea behind Ubis Public and Unique Mining Services 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 Global Correlations module to find global opportunities by holding instruments from different markets.