Correlation Between Universal Display and QUEEN S

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

By analyzing existing cross correlation between Universal Display and QUEEN S ROAD, you can compare the effects of market volatilities on Universal Display and QUEEN S 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 Universal Display with a short position of QUEEN S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and QUEEN S.

Diversification Opportunities for Universal Display and QUEEN S

-0.31

Correlation Coefficient

Universal Display  QUEEN S

Very good diversification

The 3 months correlation between Universal and QUEEN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display and QUEEN S ROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUEEN S ROAD and Universal Display 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 Universal Display are associated (or correlated) with QUEEN S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUEEN S ROAD has no effect on the direction of Universal Display i.e., Universal Display and QUEEN S go up and down completely randomly.

Pair Corralation between Universal Display and QUEEN S

Assuming the 90 days horizon Universal Display is expected to generate 0.62 times more return on investment than QUEEN S. However, Universal Display is 1.62 times less risky than QUEEN S. It trades about 0.04 of its potential returns per unit of risk. QUEEN S ROAD is currently generating about 0.02 per unit of risk. If you would invest  10,230  in Universal Display on September 29, 2024 and sell it today you would earn a total of  4,240  from holding Universal Display or generate 41.45% return on investment over 90 days.

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

Universal Display  vs.  QUEEN S ROAD

Universal Display

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Universal Display has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

QUEEN S ROAD

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QUEEN S ROAD are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QUEEN S may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Universal Display and QUEEN S

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

The idea behind Universal Display and QUEEN S ROAD 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.