Correlation Between United Guardian and Xilinx

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

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

Diversification Opportunities for United Guardian and Xilinx

0.0

Correlation Coefficient

United Guardian  Xilinx

Pay attention - limited upside

The 3 months correlation between United and Xilinx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Guardian and Xilinx Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinx Inc and United Guardian 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 Guardian are associated (or correlated) with Xilinx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinx Inc has no effect on the direction of United Guardian i.e., United Guardian and Xilinx go up and down completely randomly.

Pair Corralation between United Guardian and Xilinx

If you would invest  837.00  in United Guardian on February 28, 2024 and sell it today you would earn a total of  50.00  from holding United Guardian or generate 5.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

United Guardian  vs.  Xilinx Inc

United Guardian

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in United Guardian are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, United Guardian may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Xilinx Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with United Guardian and Xilinx

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

The idea behind United Guardian and Xilinx Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..