Correlation Between Cardano and UBEX

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cardano and UBEX 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 Cardano and UBEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardano and UBEX, you can compare the effects of market volatilities on Cardano and UBEX 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 Cardano with a short position of UBEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and UBEX.

Diversification Opportunities for Cardano and UBEX

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Cardano and UBEX is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and UBEX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBEX and Cardano 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 Cardano are associated (or correlated) with UBEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBEX has no effect on the direction of Cardano i.e., Cardano and UBEX go up and down completely randomly.

Pair Corralation between Cardano and UBEX

Assuming the 90 days trading horizon Cardano is expected to generate 1.29 times less return on investment than UBEX. In addition to that, Cardano is 1.16 times more volatile than UBEX. It trades about 0.05 of its total potential returns per unit of risk. UBEX is currently generating about 0.08 per unit of volatility. If you would invest  0.00  in UBEX on December 29, 2023 and sell it today you would earn a total of  0.00  from holding UBEX or generate 5.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Cardano  vs.  UBEX

 Performance 
       Timeline  
Cardano 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Cardano are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Cardano exhibited solid returns over the last few months and may actually be approaching a breakup point.
UBEX 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in UBEX are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, UBEX exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cardano and UBEX Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cardano and UBEX

The main advantage of trading using opposite Cardano and UBEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, UBEX 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 UBEX will offset losses from the drop in UBEX's long position.
The idea behind Cardano and UBEX 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities