Correlation Between United Internet and OneApex
Can any of the company-specific risk be diversified away by investing in both United Internet and OneApex 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 United Internet and OneApex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and OneApex Limited, you can compare the effects of market volatilities on United Internet and OneApex 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 United Internet with a short position of OneApex. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and OneApex.
Diversification Opportunities for United Internet and OneApex
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and OneApex is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG and OneApex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneApex Limited and United Internet 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 United Internet AG are associated (or correlated) with OneApex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneApex Limited has no effect on the direction of United Internet i.e., United Internet and OneApex go up and down completely randomly.
Pair Corralation between United Internet and OneApex
Assuming the 90 days trading horizon United Internet AG is expected to under-perform the OneApex. But the stock apears to be less risky and, when comparing its historical volatility, United Internet AG is 2.9 times less risky than OneApex. The stock trades about -0.13 of its potential returns per unit of risk. The OneApex Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7.65 in OneApex Limited on September 24, 2024 and sell it today you would lose (0.40) from holding OneApex Limited or give up 5.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
United Internet AG vs. OneApex Limited
Performance |
Timeline |
United Internet AG |
OneApex Limited |
United Internet and OneApex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Internet and OneApex
The main advantage of trading using opposite United Internet and OneApex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet position performs unexpectedly, OneApex 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 OneApex will offset losses from the drop in OneApex's long position.United Internet vs. Charter Communications | United Internet vs. Federal Agricultural Mortgage | United Internet vs. Daito Trust Construction | United Internet vs. North American Construction |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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