Correlation Between United Guardian and Raytech Holding
Can any of the company-specific risk be diversified away by investing in both United Guardian and Raytech Holding 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 United Guardian and Raytech Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Guardian and Raytech Holding Limited, you can compare the effects of market volatilities on United Guardian and Raytech Holding 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 United Guardian with a short position of Raytech Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Guardian and Raytech Holding.
Diversification Opportunities for United Guardian and Raytech Holding
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and Raytech is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding United Guardian and Raytech Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytech Holding and United Guardian 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 United Guardian are associated (or correlated) with Raytech Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytech Holding has no effect on the direction of United Guardian i.e., United Guardian and Raytech Holding go up and down completely randomly.
Pair Corralation between United Guardian and Raytech Holding
Allowing for the 90-day total investment horizon United Guardian is expected to generate 0.18 times more return on investment than Raytech Holding. However, United Guardian is 5.65 times less risky than Raytech Holding. It trades about -0.25 of its potential returns per unit of risk. Raytech Holding Limited is currently generating about -0.31 per unit of risk. If you would invest 819.00 in United Guardian on August 26, 2025 and sell it today you would lose (257.00) from holding United Guardian or give up 31.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Guardian vs. Raytech Holding Limited
Performance |
| Timeline |
| United Guardian |
| Raytech Holding |
United Guardian and Raytech Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Guardian and Raytech Holding
The main advantage of trading using opposite United Guardian and Raytech Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Guardian position performs unexpectedly, Raytech Holding 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 Raytech Holding will offset losses from the drop in Raytech Holding's long position.| United Guardian vs. Yooma Wellness | United Guardian vs. Omni Health | United Guardian vs. Sabra Healthcare REIT | United Guardian vs. Viemed Healthcare |
| Raytech Holding vs. Paiute Oil Mining | Raytech Holding vs. NXP Semiconductors NV | Raytech Holding vs. Stewart Information Services | Raytech Holding vs. Sun Country Airlines |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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