Correlation Between Service Properties and United Industrial

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

Diversification Opportunities for Service Properties and United Industrial

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Service Properties and United Industrial

If you would invest  2,722  in United Industrial on September 4, 2025 and sell it today you would earn a total of  0.00  from holding United Industrial or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Service Properties Trust  vs.  United Industrial

 Performance 
       Timeline  
Service Properties Trust 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Service Properties Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
United Industrial 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days United Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, United Industrial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Service Properties and United Industrial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Service Properties and United Industrial

The main advantage of trading using opposite Service Properties and United Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Service Properties position performs unexpectedly, United Industrial 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 Industrial will offset losses from the drop in United Industrial's long position.
The idea behind Service Properties Trust and United Industrial 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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