Correlation Between Univest Pennsylvania and Universal Electronics
Can any of the company-specific risk be diversified away by investing in both Univest Pennsylvania and Universal Electronics 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 Univest Pennsylvania and Universal Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univest Pennsylvania and Universal Electronics, you can compare the effects of market volatilities on Univest Pennsylvania and Universal Electronics 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 Univest Pennsylvania with a short position of Universal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univest Pennsylvania and Universal Electronics.
Diversification Opportunities for Univest Pennsylvania and Universal Electronics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Univest and Universal is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Univest Pennsylvania and Universal Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Electronics and Univest Pennsylvania 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 Univest Pennsylvania are associated (or correlated) with Universal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Electronics has no effect on the direction of Univest Pennsylvania i.e., Univest Pennsylvania and Universal Electronics go up and down completely randomly.
Pair Corralation between Univest Pennsylvania and Universal Electronics
Given the investment horizon of 90 days Univest Pennsylvania is expected to generate 0.48 times more return on investment than Universal Electronics. However, Univest Pennsylvania is 2.08 times less risky than Universal Electronics. It trades about 0.08 of its potential returns per unit of risk. Universal Electronics is currently generating about -0.11 per unit of risk. If you would invest 2,917 in Univest Pennsylvania on June 3, 2025 and sell it today you would earn a total of 250.00 from holding Univest Pennsylvania or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Univest Pennsylvania vs. Universal Electronics
Performance |
| Timeline |
| Univest Pennsylvania |
| Universal Electronics |
Univest Pennsylvania and Universal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univest Pennsylvania and Universal Electronics
The main advantage of trading using opposite Univest Pennsylvania and Universal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univest Pennsylvania position performs unexpectedly, Universal Electronics 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 Universal Electronics will offset losses from the drop in Universal Electronics' long position.| Univest Pennsylvania vs. National Bank Holdings | Univest Pennsylvania vs. Community Bank System | Univest Pennsylvania vs. Home Bancorp | Univest Pennsylvania vs. ST Bancorp |
| Universal Electronics vs. LG Display Co | Universal Electronics vs. Emerson Radio | Universal Electronics vs. United Fire Group | Universal Electronics vs. Univest Pennsylvania |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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