Correlation Between Universal Security and Leafly Holdings

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

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

Diversification Opportunities for Universal Security and Leafly Holdings

0.0

Correlation Coefficient

Universal Security  Leafly Holdings

Pay attention - limited upside

The 3 months correlation between Universal and Leafly is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Universal Security Instruments and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings and Universal Security 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 Security Instruments are associated (or correlated) with Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of Universal Security i.e., Universal Security and Leafly Holdings go up and down completely randomly.

Pair Corralation between Universal Security and Leafly Holdings

If you would invest  205.00  in Universal Security Instruments on May 6, 2025 and sell it today you would earn a total of  121.00  from holding Universal Security Instruments or generate 59.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Universal Security Instruments  vs.  Leafly Holdings

Universal Security

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Universal Security Instruments are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Universal Security unveiled solid returns over the last few months and may actually be approaching a breakup point.

Leafly Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Leafly Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Leafly Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Universal Security and Leafly Holdings

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

The idea behind Universal Security Instruments and Leafly Holdings 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.