Correlation Between Usio and CBAAU

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

By analyzing existing cross correlation between Usio Inc and CBAAU 4899236 07 JUL 25, you can compare the effects of market volatilities on Usio and CBAAU 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 Usio with a short position of CBAAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usio and CBAAU.

Diversification Opportunities for Usio and CBAAU

0.25

Correlation Coefficient

Usio  CBAAU

Modest diversification

The 3 months correlation between Usio and CBAAU is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Usio Inc and CBAAU 4899236 07 JUL 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBAAU 4899236 07 and Usio 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 Usio Inc are associated (or correlated) with CBAAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBAAU 4899236 07 has no effect on the direction of Usio i.e., Usio and CBAAU go up and down completely randomly.

Pair Corralation between Usio and CBAAU

Given the investment horizon of 90 days Usio Inc is expected to under-perform the CBAAU. In addition to that, Usio is 27.83 times more volatile than CBAAU 4899236 07 JUL 25. It trades about -0.01 of its total potential returns per unit of risk. CBAAU 4899236 07 JUL 25 is currently generating about 0.03 per unit of volatility. If you would invest  9,999  in CBAAU 4899236 07 JUL 25 on September 14, 2024 and sell it today you would earn a total of  7.00  from holding CBAAU 4899236 07 JUL 25 or generate 0.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	38.1%
Values	Daily Returns

Usio Inc  vs.  CBAAU 4899236 07 JUL 25

Usio Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Usio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Usio is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

CBAAU 4899236 07

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CBAAU 4899236 07 JUL 25 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CBAAU is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Usio and CBAAU

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

The idea behind Usio Inc and CBAAU 4899236 07 JUL 25 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.