Correlation Between Webus International and United Internet
Can any of the company-specific risk be diversified away by investing in both Webus International and United Internet 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 Webus International and United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Webus International Limited and United Internet AG, you can compare the effects of market volatilities on Webus International and United Internet 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 Webus International with a short position of United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webus International and United Internet.
Diversification Opportunities for Webus International and United Internet
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Webus and United is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Webus International Limited and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG and Webus International 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 Webus International Limited are associated (or correlated) with United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Webus International i.e., Webus International and United Internet go up and down completely randomly.
Pair Corralation between Webus International and United Internet
Given the investment horizon of 90 days Webus International Limited is expected to under-perform the United Internet. In addition to that, Webus International is 3.49 times more volatile than United Internet AG. It trades about -0.24 of its total potential returns per unit of risk. United Internet AG is currently generating about 0.11 per unit of volatility. If you would invest 2,780 in United Internet AG on September 8, 2025 and sell it today you would earn a total of 316.00 from holding United Internet AG or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Webus International Limited vs. United Internet AG
Performance |
| Timeline |
| Webus International |
| United Internet AG |
Webus International and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Webus International and United Internet
The main advantage of trading using opposite Webus International and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Webus International position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| Webus International vs. United Parcel Service | Webus International vs. Greenidge Generation Holdings | Webus International vs. Medirom Healthcare Technologies | Webus International vs. Listed Funds Trust |
| United Internet vs. NVIDIA | United Internet vs. Apple Inc | United Internet vs. Alphabet Inc Class C | United Internet vs. Microsoft |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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