Correlation Between Unisys and N Able

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

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

Diversification Opportunities for Unisys and N Able

-0.76

Correlation Coefficient

Unisys  N Able

Pay attention - limited upside

The 3 months correlation between Unisys and NABL is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Unisys and N Able Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Able Inc and Unisys 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 Unisys are associated (or correlated) with N Able. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Able Inc has no effect on the direction of Unisys i.e., Unisys and N Able go up and down completely randomly.

Pair Corralation between Unisys and N Able

Considering the 90-day investment horizon Unisys is expected to generate 3.49 times more return on investment than N Able. However, Unisys is 3.49 times more volatile than N Able Inc. It trades about 0.13 of its potential returns per unit of risk. N Able Inc is currently generating about -0.17 per unit of risk. If you would invest  558.00  in Unisys on September 3, 2024 and sell it today you would earn a total of  240.00  from holding Unisys or generate 43.01% return on investment over 90 days.

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

Unisys  vs.  N Able Inc

Unisys

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Unisys are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile forward indicators, Unisys unveiled solid returns over the last few months and may actually be approaching a breakup point.

N Able Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days N Able Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental drivers 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 Unisys and N Able

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

The idea behind Unisys and N Able Inc 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.