Pair Correlation Between Sprint and UTStarcom Holdings

This module allows you to analyze existing cross correlation between Sprint Corporation and UTStarcom Holdings Corp. You can compare the effects of market volatilities on Sprint and UTStarcom Holdings 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 Sprint with a short position of UTStarcom Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of Sprint and UTStarcom Holdings.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Sprint Corp.  vs   UTStarcom Holdings Corp
 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to under-perform the UTStarcom Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Sprint Corporation is 1.87 times less risky than UTStarcom Holdings. The stock trades about -0.4 of its potential returns per unit of risk. The UTStarcom Holdings Corp is currently generating about 0.62 of returns per unit of risk over similar time horizon. If you would invest  228.99  in UTStarcom Holdings Corp on September 23, 2017 and sell it today you would earn a total of  82.01  from holding UTStarcom Holdings Corp or generate 35.81% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Sprint and UTStarcom Holdings
-0.9

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthSignificant
Accuracy90.91%
ValuesDaily Returns

Diversification

Pay attention

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Sprint

  
0 

Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

UTStarcom Holdings Corp

  
42 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in UTStarcom Holdings Corp are ranked lower than 42 (%) of all global equities and portfolios over the last 30 days.