Correlation Between Windfall Geotek and Unitronix

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

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

Diversification Opportunities for Windfall Geotek and Unitronix

-0.59

Correlation Coefficient

Windfall Geotek  Unitronix

Excellent diversification

The 3 months correlation between Windfall and Unitronix is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Windfall Geotek and Unitronix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitronix and Windfall Geotek 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 Windfall Geotek are associated (or correlated) with Unitronix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitronix has no effect on the direction of Windfall Geotek i.e., Windfall Geotek and Unitronix go up and down completely randomly.

Pair Corralation between Windfall Geotek and Unitronix

Assuming the 90 days horizon Windfall Geotek is expected to generate 1.08 times more return on investment than Unitronix. However, Windfall Geotek is 1.08 times more volatile than Unitronix. It trades about 0.09 of its potential returns per unit of risk. Unitronix is currently generating about 0.09 per unit of risk. If you would invest  2.70  in Windfall Geotek on July 25, 2025 and sell it today you would lose (1.30) from holding Windfall Geotek or give up 48.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.24%
Values	Daily Returns

Windfall Geotek  vs.  Unitronix

Windfall Geotek

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Windfall Geotek are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking signals, Windfall Geotek reported solid returns over the last few months and may actually be approaching a breakup point.

Unitronix

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Unitronix are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Unitronix showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Windfall Geotek and Unitronix

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

The idea behind Windfall Geotek and Unitronix 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.