Correlation Between One Gas and UGI

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

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

Diversification Opportunities for One Gas and UGI

-0.8

Correlation Coefficient

One Gas  UGI

Pay attention - limited upside

The 3 months correlation between One and UGI is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding One Gas and UGI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UGI Corporation and One Gas 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 One Gas are associated (or correlated) with UGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UGI Corporation has no effect on the direction of One Gas i.e., One Gas and UGI go up and down completely randomly.

Pair Corralation between One Gas and UGI

Considering the 90-day investment horizon One Gas is expected to generate 0.94 times more return on investment than UGI. However, One Gas is 1.07 times less risky than UGI. It trades about 0.17 of its potential returns per unit of risk. UGI Corporation is currently generating about -0.11 per unit of risk. If you would invest  7,247  in One Gas on July 11, 2025 and sell it today you would earn a total of  853.00  from holding One Gas or generate 11.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

One Gas  vs.  UGI Corp.

One Gas

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in One Gas are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, One Gas may actually be approaching a critical reversion point that can send shares even higher in November 2025.

UGI Corporation

Risk-Adjusted Performance

Weakest

Over the last 90 days UGI Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with One Gas and UGI

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

The idea behind One Gas and UGI Corporation 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.