Correlation Between Uniinfo Telecom and Paramount Communications

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

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

Diversification Opportunities for Uniinfo Telecom and Paramount Communications

0.48

Correlation Coefficient

Uniinfo Telecom  Paramount Communications

Very weak diversification

The 3 months correlation between Uniinfo and Paramount is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Uniinfo Telecom Services and Paramount Communications Limit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paramount Communications and Uniinfo Telecom 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 Uniinfo Telecom Services are associated (or correlated) with Paramount Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paramount Communications has no effect on the direction of Uniinfo Telecom i.e., Uniinfo Telecom and Paramount Communications go up and down completely randomly.

Pair Corralation between Uniinfo Telecom and Paramount Communications

Assuming the 90 days trading horizon Uniinfo Telecom Services is expected to generate 0.86 times more return on investment than Paramount Communications. However, Uniinfo Telecom Services is 1.16 times less risky than Paramount Communications. It trades about 0.17 of its potential returns per unit of risk. Paramount Communications Limited is currently generating about 0.06 per unit of risk. If you would invest  1,560  in Uniinfo Telecom Services on May 5, 2025 and sell it today you would earn a total of  477.00  from holding Uniinfo Telecom Services or generate 30.58% return on investment over 90 days.

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

Uniinfo Telecom Services  vs.  Paramount Communications Limit

Uniinfo Telecom Services

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uniinfo Telecom Services are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Uniinfo Telecom displayed solid returns over the last few months and may actually be approaching a breakup point.

Paramount Communications

Risk-Adjusted Performance

Insignificant

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

Pair Trading with Uniinfo Telecom and Paramount Communications

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

The idea behind Uniinfo Telecom Services and Paramount Communications Limited 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.