Correlation Between Us Global and Portman Ridge

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

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

Diversification Opportunities for Us Global and Portman Ridge

-0.12

Correlation Coefficient

Us Global  Portman Ridge

Good diversification

The 3 months correlation between USGA and Portman is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Us Global Nanospace and Portman Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Portman Ridge Finance and Us Global 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 Us Global Nanospace are associated (or correlated) with Portman Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Portman Ridge Finance has no effect on the direction of Us Global i.e., Us Global and Portman Ridge go up and down completely randomly.

Pair Corralation between Us Global and Portman Ridge

Given the investment horizon of 90 days Us Global Nanospace is expected to generate 91.49 times more return on investment than Portman Ridge. However, Us Global is 91.49 times more volatile than Portman Ridge Finance. It trades about 0.13 of its potential returns per unit of risk. Portman Ridge Finance is currently generating about 0.06 per unit of risk. If you would invest  0.00  in Us Global Nanospace on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Us Global Nanospace or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Us Global Nanospace  vs.  Portman Ridge Finance

Us Global Nanospace

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Us Global Nanospace are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical and fundamental indicators, Us Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Portman Ridge Finance

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Portman Ridge Finance are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Portman Ridge is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Us Global and Portman Ridge

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

The idea behind Us Global Nanospace and Portman Ridge Finance 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.