Correlation Between UTD OV and POSBO UNSPADRS/20YC1

Can any of the company-specific risk be diversified away by investing in both UTD OV and POSBO UNSPADRS/20YC1 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 UTD OV and POSBO UNSPADRS/20YC1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UTD OV BK LOC ADR1 and POSBO UNSPADRS20YC1, you can compare the effects of market volatilities on UTD OV and POSBO UNSPADRS/20YC1 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 UTD OV with a short position of POSBO UNSPADRS/20YC1. Check out your portfolio center. Please also check ongoing floating volatility patterns of UTD OV and POSBO UNSPADRS/20YC1.

Diversification Opportunities for UTD OV and POSBO UNSPADRS/20YC1

0.27

Correlation Coefficient

UTD OV  POSBO UNSPADRS/20YC1

Modest diversification

The 3 months correlation between UTD and POSBO is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding UTD OV BK LOC ADR1 and POSBO UNSPADRS20YC1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POSBO UNSPADRS/20YC1 and UTD OV 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 UTD OV BK LOC ADR1 are associated (or correlated) with POSBO UNSPADRS/20YC1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POSBO UNSPADRS/20YC1 has no effect on the direction of UTD OV i.e., UTD OV and POSBO UNSPADRS/20YC1 go up and down completely randomly.

Pair Corralation between UTD OV and POSBO UNSPADRS/20YC1

If you would invest  4,600  in UTD OV BK LOC ADR1 on April 22, 2025 and sell it today you would earn a total of  260.00  from holding UTD OV BK LOC ADR1 or generate 5.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

UTD OV BK LOC ADR1  vs.  POSBO UNSPADRS20YC1

UTD OV BK

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UTD OV BK LOC ADR1 are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, UTD OV may actually be approaching a critical reversion point that can send shares even higher in August 2025.

POSBO UNSPADRS/20YC1

Risk-Adjusted Performance

Good

Over the last 90 days POSBO UNSPADRS20YC1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak fundamental drivers, POSBO UNSPADRS/20YC1 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with UTD OV and POSBO UNSPADRS/20YC1

The main advantage of trading using opposite UTD OV and POSBO UNSPADRS/20YC1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UTD OV position performs unexpectedly, POSBO UNSPADRS/20YC1 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 POSBO UNSPADRS/20YC1 will offset losses from the drop in POSBO UNSPADRS/20YC1's long position.

The idea behind UTD OV BK LOC ADR1 and POSBO UNSPADRS20YC1 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 Commodity Directory module to find actively traded commodities issued by global exchanges.