Correlation Between ULTRA CLEAN and Anfield Resources
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN and Anfield Resources 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 ULTRA CLEAN and Anfield Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and Anfield Resources, you can compare the effects of market volatilities on ULTRA CLEAN and Anfield Resources 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 ULTRA CLEAN with a short position of Anfield Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and Anfield Resources.
Diversification Opportunities for ULTRA CLEAN and Anfield Resources
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ULTRA and Anfield is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and Anfield Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Resources and ULTRA CLEAN 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 ULTRA CLEAN HLDGS are associated (or correlated) with Anfield Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Resources has no effect on the direction of ULTRA CLEAN i.e., ULTRA CLEAN and Anfield Resources go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and Anfield Resources
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 0.29 times more return on investment than Anfield Resources. However, ULTRA CLEAN HLDGS is 3.5 times less risky than Anfield Resources. It trades about -0.07 of its potential returns per unit of risk. Anfield Resources is currently generating about -0.2 per unit of risk. If you would invest 3,660 in ULTRA CLEAN HLDGS on September 24, 2024 and sell it today you would lose (200.00) from holding ULTRA CLEAN HLDGS or give up 5.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
ULTRA CLEAN HLDGS vs. Anfield Resources
Performance |
Timeline |
ULTRA CLEAN HLDGS |
Anfield Resources |
ULTRA CLEAN and Anfield Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ULTRA CLEAN and Anfield Resources
The main advantage of trading using opposite ULTRA CLEAN and Anfield Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN position performs unexpectedly, Anfield Resources 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 Anfield Resources will offset losses from the drop in Anfield Resources' long position.ULTRA CLEAN vs. Virtus Investment Partners | ULTRA CLEAN vs. Liberty Broadband | ULTRA CLEAN vs. AGNC INVESTMENT | ULTRA CLEAN vs. Gaztransport Technigaz SA |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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