Correlation Between Ucloudlink and U S Cellular

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

By analyzing existing cross correlation between Ucloudlink Group and United States Cellular, you can compare the effects of market volatilities on Ucloudlink and U S Cellular 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 Ucloudlink with a short position of U S Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ucloudlink and U S Cellular.

Diversification Opportunities for Ucloudlink and U S Cellular

0.88

Correlation Coefficient

Ucloudlink  U S Cellular

Very poor diversification

The 3 months correlation between Ucloudlink and USM is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ucloudlink Group and United States Cellular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Cellular and Ucloudlink 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 Ucloudlink Group are associated (or correlated) with U S Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Cellular has no effect on the direction of Ucloudlink i.e., Ucloudlink and U S Cellular go up and down completely randomly.

Pair Corralation between Ucloudlink and U S Cellular

Considering the 90-day investment horizon Ucloudlink Group is expected to generate 3.39 times more return on investment than U S Cellular. However, Ucloudlink is 3.39 times more volatile than United States Cellular. It trades about 0.34 of its potential returns per unit of risk. United States Cellular is currently generating about 0.23 per unit of risk. If you would invest  128.00  in Ucloudlink Group on May 15, 2025 and sell it today you would earn a total of  270.00  from holding Ucloudlink Group or generate 210.94% return on investment over 90 days.

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

Ucloudlink Group  vs.  United States Cellular

Ucloudlink Group

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Ucloudlink Group are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Ucloudlink disclosed solid returns over the last few months and may actually be approaching a breakup point.

United States Cellular

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in United States Cellular are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, U S Cellular displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ucloudlink and U S Cellular

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

The idea behind Ucloudlink Group and United States Cellular 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.