Correlation Between Ubiquiti Networks and InterDigital
Can any of the company-specific risk be diversified away by investing in both Ubiquiti Networks and InterDigital 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 Ubiquiti Networks and InterDigital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubiquiti Networks and InterDigital, you can compare the effects of market volatilities on Ubiquiti Networks and InterDigital 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 Ubiquiti Networks with a short position of InterDigital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubiquiti Networks and InterDigital.
Diversification Opportunities for Ubiquiti Networks and InterDigital
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ubiquiti and InterDigital is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ubiquiti Networks and InterDigital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterDigital and Ubiquiti Networks 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 Ubiquiti Networks are associated (or correlated) with InterDigital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterDigital has no effect on the direction of Ubiquiti Networks i.e., Ubiquiti Networks and InterDigital go up and down completely randomly.
Pair Corralation between Ubiquiti Networks and InterDigital
Allowing for the 90-day total investment horizon Ubiquiti Networks is expected to under-perform the InterDigital. In addition to that, Ubiquiti Networks is 1.17 times more volatile than InterDigital. It trades about -0.05 of its total potential returns per unit of risk. InterDigital is currently generating about -0.04 per unit of volatility. If you would invest 33,990 in InterDigital on October 10, 2025 and sell it today you would lose (3,067) from holding InterDigital or give up 9.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubiquiti Networks vs. InterDigital
Performance |
| Timeline |
| Ubiquiti Networks |
| InterDigital |
Ubiquiti Networks and InterDigital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubiquiti Networks and InterDigital
The main advantage of trading using opposite Ubiquiti Networks and InterDigital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubiquiti Networks position performs unexpectedly, InterDigital 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 InterDigital will offset losses from the drop in InterDigital's long position.| Ubiquiti Networks vs. Nokia Corp ADR | Ubiquiti Networks vs. Monolithic Power Systems | Ubiquiti Networks vs. Electronic Arts | Ubiquiti Networks vs. Take Two Interactive Software |
| InterDigital vs. International Business Machines | InterDigital vs. SAP SE ADR | InterDigital vs. Micron Technology | InterDigital vs. Salesforce |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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