Correlation Between UTI Asset and Container

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

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

Diversification Opportunities for UTI Asset and Container

0.83

Correlation Coefficient

UTI Asset  Container

Very poor diversification

The 3 months correlation between UTI and Container is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding UTI Asset Management and Container of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Container and UTI Asset 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 UTI Asset Management are associated (or correlated) with Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Container has no effect on the direction of UTI Asset i.e., UTI Asset and Container go up and down completely randomly.

Pair Corralation between UTI Asset and Container

Assuming the 90 days trading horizon UTI Asset Management is expected to generate 0.8 times more return on investment than Container. However, UTI Asset Management is 1.25 times less risky than Container. It trades about 0.06 of its potential returns per unit of risk. Container of is currently generating about 0.02 per unit of risk. If you would invest  77,041  in UTI Asset Management on April 6, 2025 and sell it today you would earn a total of  51,959  from holding UTI Asset Management or generate 67.44% return on investment over 90 days.

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

UTI Asset Management  vs.  Container of

UTI Asset Management

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UTI Asset Management are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, UTI Asset sustained solid returns over the last few months and may actually be approaching a breakup point.

Container

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Container of are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal fundamental indicators, Container sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with UTI Asset and Container

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

The idea behind UTI Asset Management and Container of 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.