Correlation Between Internet Gold and Unitronics

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

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

Diversification Opportunities for Internet Gold and Unitronics

-0.66

Correlation Coefficient

Internet Gold  Unitronics

Excellent diversification

The 3 months correlation between Internet and Unitronics is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Internet Gold Golden and Unitronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitronics and Internet Gold 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 Internet Gold Golden are associated (or correlated) with Unitronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitronics has no effect on the direction of Internet Gold i.e., Internet Gold and Unitronics go up and down completely randomly.

Pair Corralation between Internet Gold and Unitronics

Assuming the 90 days trading horizon Internet Gold Golden is expected to generate 2.47 times more return on investment than Unitronics. However, Internet Gold is 2.47 times more volatile than Unitronics. It trades about 0.1 of its potential returns per unit of risk. Unitronics is currently generating about -0.14 per unit of risk. If you would invest  33,100  in Internet Gold Golden on May 9, 2025 and sell it today you would earn a total of  6,900  from holding Internet Gold Golden or generate 20.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.04%
Values	Daily Returns

Internet Gold Golden  vs.  Unitronics

Internet Gold Golden

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Internet Gold Golden are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Internet Gold sustained solid returns over the last few months and may actually be approaching a breakup point.

Unitronics

Risk-Adjusted Performance

Weakest

Over the last 90 days Unitronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Internet Gold and Unitronics

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

The idea behind Internet Gold Golden and Unitronics 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.