Correlation Between UY Scuti and Israel Acquisitions

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

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

Diversification Opportunities for UY Scuti and Israel Acquisitions

-0.18

Correlation Coefficient

UY Scuti  Israel Acquisitions

Good diversification

The 3 months correlation between UYSC and Israel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding UY Scuti Acquisition and Israel Acquisitions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Acquisitions Corp and UY Scuti 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 UY Scuti Acquisition are associated (or correlated) with Israel Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Acquisitions Corp has no effect on the direction of UY Scuti i.e., UY Scuti and Israel Acquisitions go up and down completely randomly.

Pair Corralation between UY Scuti and Israel Acquisitions

Given the investment horizon of 90 days UY Scuti Acquisition is expected to generate 0.07 times more return on investment than Israel Acquisitions. However, UY Scuti Acquisition is 14.11 times less risky than Israel Acquisitions. It trades about 0.11 of its potential returns per unit of risk. Israel Acquisitions Corp is currently generating about 0.0 per unit of risk. If you would invest  1,010  in UY Scuti Acquisition on August 4, 2025 and sell it today you would earn a total of  8.00  from holding UY Scuti Acquisition or generate 0.79% return on investment over 90 days.

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

UY Scuti Acquisition  vs.  Israel Acquisitions Corp

UY Scuti Acquisition

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in UY Scuti Acquisition are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, UY Scuti is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Israel Acquisitions Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Israel Acquisitions Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Israel Acquisitions is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with UY Scuti and Israel Acquisitions

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

The idea behind UY Scuti Acquisition and Israel Acquisitions Corp 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 CEOs Directory module to screen CEOs from public companies around the world.