Correlation Between Uniserve Communications and Wilmington Capital

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

By analyzing existing cross correlation between Uniserve Communications Corp and Wilmington Capital Management, you can compare the effects of market volatilities on Uniserve Communications and Wilmington Capital 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 Uniserve Communications with a short position of Wilmington Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniserve Communications and Wilmington Capital.

Diversification Opportunities for Uniserve Communications and Wilmington Capital

0.38

Correlation Coefficient

Uniserve Communications  Wilmington Capital

Weak diversification

The 3 months correlation between Uniserve and Wilmington is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Uniserve Communications Corp and Wilmington Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Capital and Uniserve Communications 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 Uniserve Communications Corp are associated (or correlated) with Wilmington Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Capital has no effect on the direction of Uniserve Communications i.e., Uniserve Communications and Wilmington Capital go up and down completely randomly.

Pair Corralation between Uniserve Communications and Wilmington Capital

Assuming the 90 days horizon Uniserve Communications Corp is expected to generate 4.18 times more return on investment than Wilmington Capital. However, Uniserve Communications is 4.18 times more volatile than Wilmington Capital Management. It trades about 0.07 of its potential returns per unit of risk. Wilmington Capital Management is currently generating about 0.02 per unit of risk. If you would invest  21.00  in Uniserve Communications Corp on April 25, 2025 and sell it today you would earn a total of  26.00  from holding Uniserve Communications Corp or generate 123.81% return on investment over 90 days.

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

Uniserve Communications Corp  vs.  Wilmington Capital Management

Uniserve Communications

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uniserve Communications Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Uniserve Communications showed solid returns over the last few months and may actually be approaching a breakup point.

Wilmington Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wilmington Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Wilmington Capital is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Uniserve Communications and Wilmington Capital

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

The idea behind Uniserve Communications Corp and Wilmington Capital Management 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.