Correlation Between MUA and UNIVERSAL PARTNERS

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

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

Diversification Opportunities for MUA and UNIVERSAL PARTNERS

0.0

Correlation Coefficient

MUA  UNIVERSAL PARTNERS

Pay attention - limited upside

The 3 months correlation between MUA and UNIVERSAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MUA LTD 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 MUA 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 MUA LTD 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 MUA i.e., MUA and UNIVERSAL PARTNERS go up and down completely randomly.

Pair Corralation between MUA and UNIVERSAL PARTNERS

If you would invest  6,500  in MUA LTD on April 23, 2025 and sell it today you would earn a total of  0.00  from holding MUA 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

MUA LTD  vs.  UNIVERSAL PARTNERS LTD

MUA LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MUA LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, MUA is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

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 MUA and UNIVERSAL PARTNERS

The main advantage of trading using opposite MUA and UNIVERSAL PARTNERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUA 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 MUA LTD 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.