Correlation Between Universal Scientific and Zebra Technologies

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

Diversification Opportunities for Universal Scientific and Zebra Technologies

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Universal and Zebra is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Universal Scientific Industria and Zebra Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zebra Technologies and Universal Scientific 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 Universal Scientific Industrial are associated (or correlated) with Zebra Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zebra Technologies has no effect on the direction of Universal Scientific i.e., Universal Scientific and Zebra Technologies go up and down completely randomly.

Pair Corralation between Universal Scientific and Zebra Technologies

Assuming the 90 days trading horizon Universal Scientific Industrial is expected to generate 1.36 times more return on investment than Zebra Technologies. However, Universal Scientific is 1.36 times more volatile than Zebra Technologies. It trades about 0.1 of its potential returns per unit of risk. Zebra Technologies is currently generating about -0.08 per unit of risk. If you would invest  1,875  in Universal Scientific Industrial on September 6, 2025 and sell it today you would earn a total of  377.00  from holding Universal Scientific Industrial or generate 20.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy92.19%
ValuesDaily Returns

Universal Scientific Industria  vs.  Zebra Technologies

 Performance 
       Timeline  
Universal Scientific 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Universal Scientific Industrial are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Universal Scientific sustained solid returns over the last few months and may actually be approaching a breakup point.
Zebra Technologies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Zebra Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Universal Scientific and Zebra Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Universal Scientific and Zebra Technologies

The main advantage of trading using opposite Universal Scientific and Zebra Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Scientific position performs unexpectedly, Zebra Technologies 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 Zebra Technologies will offset losses from the drop in Zebra Technologies' long position.
The idea behind Universal Scientific Industrial and Zebra Technologies 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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