Correlation Between SVI Public and Ubis Public

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

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

Diversification Opportunities for SVI Public and Ubis Public

0.46

Correlation Coefficient

SVI Public  Ubis Public

Very weak diversification

The 3 months correlation between SVI and Ubis is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding SVI Public and Ubis Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubis Public and SVI Public 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 SVI Public are associated (or correlated) with Ubis Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubis Public has no effect on the direction of SVI Public i.e., SVI Public and Ubis Public go up and down completely randomly.

Pair Corralation between SVI Public and Ubis Public

Assuming the 90 days trading horizon SVI Public is expected to under-perform the Ubis Public. But the stock apears to be less risky and, when comparing its historical volatility, SVI Public is 1.12 times less risky than Ubis Public. The stock trades about -0.14 of its potential returns per unit of risk. The Ubis Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  115.00  in Ubis Public on April 24, 2025 and sell it today you would lose (7.00) from holding Ubis Public or give up 6.09% of portfolio value over 90 days.

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

SVI Public  vs.  Ubis Public

SVI Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days SVI Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ubis Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ubis Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Ubis Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with SVI Public and Ubis Public

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

The idea behind SVI Public and Ubis Public 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.