Correlation Between Ultra Clean and TRIPCOM GROUP

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

By analyzing existing cross correlation between Ultra Clean Holdings and TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on Ultra Clean and TRIPCOM GROUP 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 Ultra Clean with a short position of TRIPCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and TRIPCOM GROUP.

Diversification Opportunities for Ultra Clean and TRIPCOM GROUP

0.09

Correlation Coefficient

Ultra Clean  TRIPCOM GROUP

Significant diversification

The 3 months correlation between Ultra and TRIPCOM is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean Holdings and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL and Ultra Clean 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 Ultra Clean Holdings are associated (or correlated) with TRIPCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of Ultra Clean i.e., Ultra Clean and TRIPCOM GROUP go up and down completely randomly.

Pair Corralation between Ultra Clean and TRIPCOM GROUP

Assuming the 90 days horizon Ultra Clean Holdings is expected to generate 1.09 times more return on investment than TRIPCOM GROUP. However, Ultra Clean is 1.09 times more volatile than TRIPCOM GROUP DL 00125. It trades about 0.06 of its potential returns per unit of risk. TRIPCOM GROUP DL 00125 is currently generating about 0.01 per unit of risk. If you would invest  1,750  in Ultra Clean Holdings on May 26, 2025 and sell it today you would earn a total of  170.00  from holding Ultra Clean Holdings or generate 9.71% return on investment over 90 days.

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

Ultra Clean Holdings  vs.  TRIPCOM GROUP DL 00125

Ultra Clean Holdings

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Ultra Clean Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ultra Clean may actually be approaching a critical reversion point that can send shares even higher in September 2025.

TRIPCOM GROUP DL

Risk-Adjusted Performance

Weakest

Over the last 90 days TRIPCOM GROUP DL 00125 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TRIPCOM GROUP is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Ultra Clean and TRIPCOM GROUP

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

The idea behind Ultra Clean Holdings and TRIPCOM GROUP DL 00125 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.