Correlation Between UNITED URBAN and Amadeus IT

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

Diversification Opportunities for UNITED URBAN and Amadeus IT

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between UNITED URBAN and Amadeus IT

Assuming the 90 days horizon UNITED URBAN INV is expected to generate 0.62 times more return on investment than Amadeus IT. However, UNITED URBAN INV is 1.61 times less risky than Amadeus IT. It trades about 0.01 of its potential returns per unit of risk. Amadeus IT Group is currently generating about -0.12 per unit of risk. If you would invest  98,759  in UNITED URBAN INV on September 1, 2025 and sell it today you would earn a total of  241.00  from holding UNITED URBAN INV or generate 0.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

UNITED URBAN INV  vs.  Amadeus IT Group

 Performance 
       Timeline  
UNITED URBAN INV 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days UNITED URBAN INV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, UNITED URBAN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
Amadeus IT Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Amadeus IT Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

UNITED URBAN and Amadeus IT Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with UNITED URBAN and Amadeus IT

The main advantage of trading using opposite UNITED URBAN and Amadeus IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED URBAN position performs unexpectedly, Amadeus IT 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 Amadeus IT will offset losses from the drop in Amadeus IT's long position.
The idea behind UNITED URBAN INV and Amadeus IT Group 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.
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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