Correlation Between Universal Electronics and Harman International
Can any of the company-specific risk be diversified away by investing in both Universal Electronics and Harman International 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 Universal Electronics and Harman International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Electronics and Harman International Industries, you can compare the effects of market volatilities on Universal Electronics and Harman International 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 Universal Electronics with a short position of Harman International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Electronics and Harman International.
Diversification Opportunities for Universal Electronics and Harman International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Universal and Harman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Universal Electronics and Harman International Industrie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harman International and Universal Electronics 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 Universal Electronics are associated (or correlated) with Harman International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harman International has no effect on the direction of Universal Electronics i.e., Universal Electronics and Harman International go up and down completely randomly.
Pair Corralation between Universal Electronics and Harman International
If you would invest (100.00) in Harman International Industries on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Harman International Industries or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Universal Electronics vs. Harman International Industrie
Performance |
| Timeline |
| Universal Electronics |
| Harman International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Universal Electronics and Harman International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Electronics and Harman International
The main advantage of trading using opposite Universal Electronics and Harman International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Electronics position performs unexpectedly, Harman International 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 Harman International will offset losses from the drop in Harman International's long position.| Universal Electronics vs. LG Display Co | Universal Electronics vs. Turtle Beach Corp | Universal Electronics vs. Vuzix Corp Cmn | Universal Electronics vs. Sony Corp |
| Harman International vs. Compania Cervecerias Unidas | Harman International vs. CanSino Biologics | Harman International vs. Willamette Valley Vineyards | Harman International vs. Constellation Brands Class |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |