Correlation Between MCB GROUP and UNIVERSAL PARTNERS

Can any of the company-specific risk be diversified away by investing in both MCB GROUP and UNIVERSAL PARTNERS 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 MCB GROUP and UNIVERSAL PARTNERS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MCB GROUP LIMITED and UNIVERSAL PARTNERS LTD, you can compare the effects of market volatilities on MCB GROUP and UNIVERSAL PARTNERS 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 MCB GROUP with a short position of UNIVERSAL PARTNERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCB GROUP and UNIVERSAL PARTNERS.

Diversification Opportunities for MCB GROUP and UNIVERSAL PARTNERS

0.0

Correlation Coefficient

MCB GROUP  UNIVERSAL PARTNERS

Pay attention - limited upside

The 3 months correlation between MCB and UNIVERSAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MCB GROUP LIMITED and UNIVERSAL PARTNERS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIVERSAL PARTNERS LTD and MCB GROUP 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 MCB GROUP LIMITED are associated (or correlated) with UNIVERSAL PARTNERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIVERSAL PARTNERS LTD has no effect on the direction of MCB GROUP i.e., MCB GROUP and UNIVERSAL PARTNERS go up and down completely randomly.

Pair Corralation between MCB GROUP and UNIVERSAL PARTNERS

If you would invest  90.00  in UNIVERSAL PARTNERS LTD on April 22, 2025 and sell it today you would earn a total of  0.00  from holding UNIVERSAL PARTNERS LTD or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MCB GROUP LIMITED  vs.  UNIVERSAL PARTNERS LTD

MCB GROUP LIMITED

Risk-Adjusted Performance

Very Weak

Over the last 90 days MCB GROUP LIMITED has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, MCB GROUP is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

UNIVERSAL PARTNERS LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days UNIVERSAL PARTNERS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, UNIVERSAL PARTNERS is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MCB GROUP and UNIVERSAL PARTNERS

The main advantage of trading using opposite MCB GROUP and UNIVERSAL PARTNERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCB GROUP position performs unexpectedly, UNIVERSAL PARTNERS 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 PARTNERS will offset losses from the drop in UNIVERSAL PARTNERS's long position.

The idea behind MCB GROUP LIMITED and UNIVERSAL PARTNERS LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.