Correlation Between Universal Media and Global Crossing

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

By analyzing existing cross correlation between Universal Media Group and Global Crossing Airlines, you can compare the effects of market volatilities on Universal Media and Global Crossing 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 Universal Media with a short position of Global Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Media and Global Crossing.

Diversification Opportunities for Universal Media and Global Crossing

0.19

Correlation Coefficient

Universal Media  Global Crossing

Average diversification

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

Pair Corralation between Universal Media and Global Crossing

Given the investment horizon of 90 days Universal Media Group is expected to under-perform the Global Crossing. In addition to that, Universal Media is 2.51 times more volatile than Global Crossing Airlines. It trades about -0.02 of its total potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.0 per unit of volatility. If you would invest  61.00  in Global Crossing Airlines on May 5, 2025 and sell it today you would lose (2.00) from holding Global Crossing Airlines or give up 3.28% of portfolio value over 90 days.

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

Universal Media Group  vs.  Global Crossing Airlines

Universal Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Universal Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Global Crossing Airlines

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Universal Media and Global Crossing

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

The idea behind Universal Media Group and Global Crossing Airlines 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.