Correlation Between STL GLOBAL and United Parcel

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

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

Diversification Opportunities for STL GLOBAL and United Parcel

0.0
  Correlation Coefficient
STL GLOBAL LTD
United Parcel Service

Pay attention - limited upside

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

Pair Corralation between STL GLOBAL and United Parcel

If you would invest  9,992  in United Parcel Service on June 14, 2020 and sell it today you would earn a total of  1,384  from holding United Parcel Service or generate 13.85% return on investment over 30 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

STL GLOBAL LTD  vs.  United Parcel Service Inc

 Performance (%) 
      Timeline 
STL GLOBAL LTD 
00

STL GLOBAL Risk-Adjusted Performance

Over the last 30 days STL GLOBAL LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, STL GLOBAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
United Parcel Service 
77

United Parcel Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in United Parcel Service are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak technical and fundamental indicators, United Parcel reported solid returns over the last few months and may actually be approaching a breakup point.

STL GLOBAL and United Parcel Volatility Contrast

Check out your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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