Correlation Between Umbra Companies and Global Crossing
Can any of the company-specific risk be diversified away by investing in both Umbra Companies and Global Crossing 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 Umbra Companies and Global Crossing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Umbra Companies and Global Crossing Airlines, you can compare the effects of market volatilities on Umbra Companies and Global Crossing 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 Umbra Companies with a short position of Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Umbra Companies and Global Crossing.
Diversification Opportunities for Umbra Companies and Global Crossing
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Umbra and Global is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Umbra Companies and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines and Umbra Companies 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 Umbra Companies are associated (or correlated) with Global Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of Umbra Companies i.e., Umbra Companies and Global Crossing go up and down completely randomly.
Pair Corralation between Umbra Companies and Global Crossing
Given the investment horizon of 90 days Umbra Companies is expected to under-perform the Global Crossing. In addition to that, Umbra Companies is 7.45 times more volatile than Global Crossing Airlines. It trades about -0.12 of its total potential returns per unit of risk. Global Crossing Airlines is currently generating about -0.02 per unit of volatility. If you would invest 67.00 in Global Crossing Airlines on August 30, 2025 and sell it today you would lose (6.00) from holding Global Crossing Airlines or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Umbra Companies vs. Global Crossing Airlines
Performance |
| Timeline |
| Umbra Companies |
| Global Crossing Airlines |
Umbra Companies and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Umbra Companies and Global Crossing
The main advantage of trading using opposite Umbra Companies and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Umbra Companies position performs unexpectedly, Global Crossing 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 Global Crossing will offset losses from the drop in Global Crossing's long position.| Umbra Companies vs. NorthPoint Communications Group | Umbra Companies vs. Blue Moon Metals | Umbra Companies vs. Video Display | Umbra Companies vs. Mineral Mountain Mining |
| Global Crossing vs. Delta Air Lines | Global Crossing vs. Ryanair Holdings PLC | Global Crossing vs. Air China Limited | Global Crossing vs. Air China Ltd |
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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