Correlation Between UNI and TLOS

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

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

Diversification Opportunities for UNI and TLOS

-0.52

Correlation Coefficient

UNI  TLOS

Excellent diversification

The 3 months correlation between UNI and TLOS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding UNI and TLOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLOS and UNI 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 UNI are associated (or correlated) with TLOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLOS has no effect on the direction of UNI i.e., UNI and TLOS go up and down completely randomly.

Pair Corralation between UNI and TLOS

Assuming the 90 days trading horizon UNI is expected to generate 1.03 times more return on investment than TLOS. However, UNI is 1.03 times more volatile than TLOS. It trades about 0.16 of its potential returns per unit of risk. TLOS is currently generating about -0.13 per unit of risk. If you would invest  602.00  in UNI on May 17, 2025 and sell it today you would earn a total of  490.00  from holding UNI or generate 81.4% return on investment over 90 days.

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

UNI  vs.  TLOS

UNI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UNI are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, UNI exhibited solid returns over the last few months and may actually be approaching a breakup point.

TLOS

Risk-Adjusted Performance

Weakest

Over the last 90 days TLOS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for TLOS shareholders.

Pair Trading with UNI and TLOS

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

The idea behind UNI and TLOS 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.