Correlation Between Sparinvest USA and United Parcel
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By analyzing existing cross correlation between Sparinvest USA Value and United Parcel Service, you can compare the effects of market volatilities on Sparinvest USA 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 Sparinvest USA with a short position of United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest USA and United Parcel.
Diversification Opportunities for Sparinvest USA and United Parcel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sparinvest and United is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest USA Value and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service and Sparinvest USA 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 Sparinvest USA Value 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 Sparinvest USA i.e., Sparinvest USA and United Parcel go up and down completely randomly.
Pair Corralation between Sparinvest USA and United Parcel
Assuming the 90 days trading horizon Sparinvest USA Value is expected to generate 0.24 times more return on investment than United Parcel. However, Sparinvest USA Value is 4.21 times less risky than United Parcel. It trades about -0.14 of its potential returns per unit of risk. United Parcel Service is currently generating about -0.09 per unit of risk. If you would invest 9,343 in Sparinvest USA Value on January 25, 2024 and sell it today you would lose (143.00) from holding Sparinvest USA Value or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sparinvest USA Value vs. United Parcel Service
Performance |
| Timeline |
| Sparinvest USA Value |
| United Parcel Service |
Sparinvest USA and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest USA and United Parcel
The main advantage of trading using opposite Sparinvest USA and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest USA position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| Sparinvest USA vs. Jyske Invest Nye | Sparinvest USA vs. Jyske Invest Nye | Sparinvest USA vs. Jyske Invest Hjt | Sparinvest USA vs. Jyske Invest Lange |
| United Parcel vs. JB Hunt Transport | United Parcel vs. Aquagold International | United Parcel vs. Thrivent High Yield | United Parcel vs. Morningstar Unconstrained Allocation |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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