Correlation Between Unisys Corp and PUBLICIS GROUPE

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Can any of the company-specific risk be diversified away by investing in both Unisys Corp and PUBLICIS GROUPE 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 Unisys Corp and PUBLICIS GROUPE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unisys Corp and PUBLICIS GROUPE SA, you can compare the effects of market volatilities on Unisys Corp and PUBLICIS GROUPE 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 Unisys Corp with a short position of PUBLICIS GROUPE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unisys Corp and PUBLICIS GROUPE.

Diversification Opportunities for Unisys Corp and PUBLICIS GROUPE

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Unisys and PUBLICIS is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Unisys Corp and PUBLICIS GROUPE SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUBLICIS GROUPE SA and Unisys Corp 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 Unisys Corp are associated (or correlated) with PUBLICIS GROUPE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUBLICIS GROUPE SA has no effect on the direction of Unisys Corp i.e., Unisys Corp and PUBLICIS GROUPE go up and down completely randomly.

Pair Corralation between Unisys Corp and PUBLICIS GROUPE

Considering the 90-day investment horizon Unisys Corp is expected to under-perform the PUBLICIS GROUPE. In addition to that, Unisys Corp is 2.01 times more volatile than PUBLICIS GROUPE SA. It trades about -0.05 of its total potential returns per unit of risk. PUBLICIS GROUPE SA is currently generating about 0.05 per unit of volatility. If you would invest  1,084  in PUBLICIS GROUPE SA on August 30, 2022 and sell it today you would earn a total of  566.00  from holding PUBLICIS GROUPE SA or generate 52.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Unisys Corp  vs.  PUBLICIS GROUPE SA

 Performance (%) 
       Timeline  
Unisys Corp 
Unisys Performance
0 of 100
Over the last 90 days Unisys Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in December 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Unisys Price Channel

PUBLICIS GROUPE SA 
PUBLICIS Performance
17 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in PUBLICIS GROUPE SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, PUBLICIS GROUPE showed solid returns over the last few months and may actually be approaching a breakup point.

PUBLICIS Price Channel

Unisys Corp and PUBLICIS GROUPE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Unisys Corp and PUBLICIS GROUPE

The main advantage of trading using opposite Unisys Corp and PUBLICIS GROUPE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unisys Corp position performs unexpectedly, PUBLICIS GROUPE 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 PUBLICIS GROUPE will offset losses from the drop in PUBLICIS GROUPE's long position.
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The idea behind Unisys Corp and PUBLICIS GROUPE SA 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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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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