Correlation Between United States and Hub Cyber

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

By analyzing existing cross correlation between United States Steel and Hub Cyber Security, you can compare the effects of market volatilities on United States and Hub Cyber 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 States with a short position of Hub Cyber. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Hub Cyber.

Diversification Opportunities for United States and Hub Cyber

0.23

Correlation Coefficient

United States  Hub Cyber

Modest diversification

The 3 months correlation between United and Hub is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Hub Cyber Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Cyber Security and United States 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 States Steel are associated (or correlated) with Hub Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Cyber Security has no effect on the direction of United States i.e., United States and Hub Cyber go up and down completely randomly.

Pair Corralation between United States and Hub Cyber

Taking into account the 90-day investment horizon United States is expected to generate 115.16 times less return on investment than Hub Cyber. But when comparing it to its historical volatility, United States Steel is 16.7 times less risky than Hub Cyber. It trades about 0.02 of its potential returns per unit of risk. Hub Cyber Security is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  23.00  in Hub Cyber Security on September 17, 2024 and sell it today you would lose (21.07) from holding Hub Cyber Security or give up 91.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	58.08%
Values	Daily Returns

United States Steel  vs.  Hub Cyber Security

United States Steel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days United States Steel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, United States is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Hub Cyber Security

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hub Cyber Security are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Hub Cyber showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with United States and Hub Cyber

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

The idea behind United States Steel and Hub Cyber Security 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.