Correlation Between COFCO Joycome and United Insurance
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and United Insurance 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 COFCO Joycome and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and United Insurance Holdings, you can compare the effects of market volatilities on COFCO Joycome and United Insurance 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 COFCO Joycome with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and United Insurance.
Diversification Opportunities for COFCO Joycome and United Insurance
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COFCO and United is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and United Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Insurance Holdings and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with United Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Insurance Holdings has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and United Insurance go up and down completely randomly.
Pair Corralation between COFCO Joycome and United Insurance
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the United Insurance. But the stock apears to be less risky and, when comparing its historical volatility, COFCO Joycome Foods is 1.03 times less risky than United Insurance. The stock trades about -0.22 of its potential returns per unit of risk. The United Insurance Holdings is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,258 in United Insurance Holdings on October 11, 2024 and sell it today you would lose (108.00) from holding United Insurance Holdings or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. United Insurance Holdings
Performance |
| Timeline |
| COFCO Joycome Foods |
| United Insurance Holdings |
COFCO Joycome and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and United Insurance
The main advantage of trading using opposite COFCO Joycome and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, United Insurance 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 United Insurance will offset losses from the drop in United Insurance's long position.| COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. NMI Holdings | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. Talanx AG |
| United Insurance vs. Austevoll Seafood ASA | United Insurance vs. RCI Hospitality Holdings | United Insurance vs. Wenzhou Kangning Hospital | United Insurance vs. COFCO Joycome Foods |
Check out your portfolio center.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |