Correlation Between United Parcel and Concordium
Can any of the company-specific risk be diversified away by investing in both United Parcel and Concordium 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 Parcel and Concordium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Parcel Service and Concordium, you can compare the effects of market volatilities on United Parcel and Concordium 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 Parcel with a short position of Concordium. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parcel and Concordium.
Diversification Opportunities for United Parcel and Concordium
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and Concordium is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding United Parcel Service and Concordium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concordium and United Parcel 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 Parcel Service are associated (or correlated) with Concordium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concordium has no effect on the direction of United Parcel i.e., United Parcel and Concordium go up and down completely randomly.
Pair Corralation between United Parcel and Concordium
Considering the 90-day investment horizon United Parcel Service is expected to under-perform the Concordium. But the stock apears to be less risky and, when comparing its historical volatility, United Parcel Service is 8.66 times less risky than Concordium. The stock trades about -0.09 of its potential returns per unit of risk. The Concordium is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.96 in Concordium on July 20, 2025 and sell it today you would earn a total of 0.92 from holding Concordium or generate 95.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
United Parcel Service vs. Concordium
Performance |
| Timeline |
| United Parcel Service |
| Concordium |
United Parcel and Concordium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Parcel and Concordium
The main advantage of trading using opposite United Parcel and Concordium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parcel position performs unexpectedly, Concordium 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 Concordium will offset losses from the drop in Concordium's long position.| United Parcel vs. FedEx | United Parcel vs. Illinois Tool Works | United Parcel vs. Canadian Pacific Railway | United Parcel vs. Johnson Controls International |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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