Correlation Between Univest Pennsylvania and ScanTech

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

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

Diversification Opportunities for Univest Pennsylvania and ScanTech

-0.37

Correlation Coefficient

Univest Pennsylvania  ScanTech

Very good diversification

The 3 months correlation between Univest and ScanTech is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Univest Pennsylvania and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems and Univest Pennsylvania 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 Univest Pennsylvania are associated (or correlated) with ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Univest Pennsylvania i.e., Univest Pennsylvania and ScanTech go up and down completely randomly.

Pair Corralation between Univest Pennsylvania and ScanTech

Given the investment horizon of 90 days Univest Pennsylvania is expected to generate 0.34 times more return on investment than ScanTech. However, Univest Pennsylvania is 2.93 times less risky than ScanTech. It trades about 0.01 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.25 per unit of risk. If you would invest  2,921  in Univest Pennsylvania on April 28, 2025 and sell it today you would earn a total of  17.00  from holding Univest Pennsylvania or generate 0.58% return on investment over 90 days.

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

Univest Pennsylvania  vs.  ScanTech AI Systems

Univest Pennsylvania

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Univest Pennsylvania are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Univest Pennsylvania is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

ScanTech AI Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Univest Pennsylvania and ScanTech

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

The idea behind Univest Pennsylvania and ScanTech AI Systems 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.