Correlation Between UNIVMUSIC GRPADR/050 and Peel Mining
Can any of the company-specific risk be diversified away by investing in both UNIVMUSIC GRPADR/050 and Peel Mining 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 UNIVMUSIC GRPADR/050 and Peel Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIVMUSIC GRPADR050 and Peel Mining Limited, you can compare the effects of market volatilities on UNIVMUSIC GRPADR/050 and Peel Mining 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 UNIVMUSIC GRPADR/050 with a short position of Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIVMUSIC GRPADR/050 and Peel Mining.
Diversification Opportunities for UNIVMUSIC GRPADR/050 and Peel Mining
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIVMUSIC and Peel is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding UNIVMUSIC GRPADR050 and Peel Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining Limited and UNIVMUSIC GRPADR/050 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 UNIVMUSIC GRPADR050 are associated (or correlated) with Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining Limited has no effect on the direction of UNIVMUSIC GRPADR/050 i.e., UNIVMUSIC GRPADR/050 and Peel Mining go up and down completely randomly.
Pair Corralation between UNIVMUSIC GRPADR/050 and Peel Mining
Assuming the 90 days trading horizon UNIVMUSIC GRPADR050 is expected to under-perform the Peel Mining. But the stock apears to be less risky and, when comparing its historical volatility, UNIVMUSIC GRPADR050 is 3.42 times less risky than Peel Mining. The stock trades about -0.07 of its potential returns per unit of risk. The Peel Mining Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3.65 in Peel Mining Limited on September 2, 2025 and sell it today you would earn a total of 2.80 from holding Peel Mining Limited or generate 76.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIVMUSIC GRPADR050 vs. Peel Mining Limited
Performance |
| Timeline |
| UNIVMUSIC GRPADR/050 |
| Peel Mining Limited |
UNIVMUSIC GRPADR/050 and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIVMUSIC GRPADR/050 and Peel Mining
The main advantage of trading using opposite UNIVMUSIC GRPADR/050 and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIVMUSIC GRPADR/050 position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining's long position.| UNIVMUSIC GRPADR/050 vs. RETAIL FOOD GROUP | UNIVMUSIC GRPADR/050 vs. Ross Stores | UNIVMUSIC GRPADR/050 vs. JIAHUA STORES | UNIVMUSIC GRPADR/050 vs. Viromed Medical AG |
| Peel Mining vs. UNIVMUSIC GRPADR050 | Peel Mining vs. AUSNUTRIA DAIRY | Peel Mining vs. BOSTON BEER A | Peel Mining vs. MTY Food Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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