Correlation Between Unity Software and F5 Networks

Can any of the company-specific risk be diversified away by investing in both Unity Software and F5 Networks 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 Unity Software and F5 Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Unity Software and F5 Networks, you can compare the effects of market volatilities on Unity Software and F5 Networks 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 Unity Software with a short position of F5 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unity Software and F5 Networks.

Diversification Opportunities for Unity Software and F5 Networks

-0.19

Correlation Coefficient

Unity Software  F5 Networks

Good diversification

The 3 months correlation between Unity and FFIV is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Unity Software and F5 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F5 Networks and Unity Software 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 Unity Software are associated (or correlated) with F5 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F5 Networks has no effect on the direction of Unity Software i.e., Unity Software and F5 Networks go up and down completely randomly.

Pair Corralation between Unity Software and F5 Networks

Taking into account the 90-day investment horizon Unity Software is expected to generate 1.88 times more return on investment than F5 Networks. However, Unity Software is 1.88 times more volatile than F5 Networks. It trades about 0.03 of its potential returns per unit of risk. F5 Networks is currently generating about -0.14 per unit of risk. If you would invest  4,452  in Unity Software on September 23, 2025 and sell it today you would earn a total of  172.00  from holding Unity Software or generate 3.86% return on investment over 90 days.

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

Unity Software  vs.  F5 Networks

Unity Software

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Unity Software are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Unity Software may actually be approaching a critical reversion point that can send shares even higher in January 2026.

F5 Networks

Risk-Adjusted Performance

Weakest

Over the last 90 days F5 Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Unity Software and F5 Networks

The main advantage of trading using opposite Unity Software and F5 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unity Software position performs unexpectedly, F5 Networks 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 F5 Networks will offset losses from the drop in F5 Networks' long position.

The idea behind Unity Software and F5 Networks 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.