Correlation Between SM Investments and United Express
Can any of the company-specific risk be diversified away by investing in both SM Investments and United Express 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 SM Investments and United Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SM Investments and United Express, you can compare the effects of market volatilities on SM Investments and United Express 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 SM Investments with a short position of United Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of SM Investments and United Express.
Diversification Opportunities for SM Investments and United Express
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SVTMF and United is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SM Investments and United Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Express and SM Investments 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 SM Investments are associated (or correlated) with United Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Express has no effect on the direction of SM Investments i.e., SM Investments and United Express go up and down completely randomly.
Pair Corralation between SM Investments and United Express
If you would invest 1,264 in SM Investments on August 27, 2025 and sell it today you would earn a total of 0.00 from holding SM Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
SM Investments vs. United Express
Performance |
| Timeline |
| SM Investments |
| United Express |
SM Investments and United Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SM Investments and United Express
The main advantage of trading using opposite SM Investments and United Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SM Investments position performs unexpectedly, United Express 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 Express will offset losses from the drop in United Express' long position.| SM Investments vs. Kingdee International Software | SM Investments vs. Cabo Drilling Corp | SM Investments vs. Essential Utilities | SM Investments vs. Check Point Software |
| United Express vs. Tekla Healthcare Investors | United Express vs. Cardinal Health | United Express vs. Aperture Health | United Express vs. Scandinavian Tobacco 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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