Correlation Between United Parks and Denison Mines

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

By analyzing existing cross correlation between United Parks Resorts and Denison Mines Corp, you can compare the effects of market volatilities on United Parks and Denison Mines 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 United Parks with a short position of Denison Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parks and Denison Mines.

Diversification Opportunities for United Parks and Denison Mines

0.43

Correlation Coefficient

United Parks  Denison Mines

Very weak diversification

The 3 months correlation between United and Denison is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding United Parks Resorts and Denison Mines Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denison Mines Corp and United Parks 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 United Parks Resorts are associated (or correlated) with Denison Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denison Mines Corp has no effect on the direction of United Parks i.e., United Parks and Denison Mines go up and down completely randomly.

Pair Corralation between United Parks and Denison Mines

Given the investment horizon of 90 days United Parks is expected to generate 5.45 times less return on investment than Denison Mines. But when comparing it to its historical volatility, United Parks Resorts is 1.78 times less risky than Denison Mines. It trades about 0.05 of its potential returns per unit of risk. Denison Mines Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  149.00  in Denison Mines Corp on May 6, 2025 and sell it today you would earn a total of  55.00  from holding Denison Mines Corp or generate 36.91% return on investment over 90 days.

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

United Parks Resorts  vs.  Denison Mines Corp

United Parks Resorts

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in United Parks Resorts are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward-looking signals, United Parks may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Denison Mines Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Denison Mines Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very sluggish basic indicators, Denison Mines displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with United Parks and Denison Mines

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

The idea behind United Parks Resorts and Denison Mines Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.