Correlation Between Unit and Mid Con
Can any of the company-specific risk be diversified away by investing in both Unit and Mid Con 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 Unit and Mid Con into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unit Corporation and Mid Con Energy Partners, you can compare the effects of market volatilities on Unit and Mid Con 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 Unit with a short position of Mid Con. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unit and Mid Con.
Diversification Opportunities for Unit and Mid Con
Pay attention - limited upside
The 3 months correlation between Unit and Mid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unit Corp. and Mid Con Energy Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Con Energy and Unit 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 Unit Corporation are associated (or correlated) with Mid Con. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Con Energy has no effect on the direction of Unit i.e., Unit and Mid Con go up and down completely randomly.
Pair Corralation between Unit and Mid Con
If you would invest (100.00) in Mid Con Energy Partners on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Mid Con Energy Partners or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unit Corp. vs. Mid Con Energy Partners
Performance |
| Timeline |
| Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mid Con Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Unit and Mid Con Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unit and Mid Con
The main advantage of trading using opposite Unit and Mid Con positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unit position performs unexpectedly, Mid Con 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 Mid Con will offset losses from the drop in Mid Con's long position.| Unit vs. HF Sinclair Corp | Unit vs. Grupo Aeroportuario del | Unit vs. RBC Bearings Incorporated | Unit vs. Office Properties Income |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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