Correlation Between United Insurance and Seres Therapeutics
Can any of the company-specific risk be diversified away by investing in both United Insurance and Seres Therapeutics 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 United Insurance and Seres Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Insurance Holdings and Seres Therapeutics, you can compare the effects of market volatilities on United Insurance and Seres Therapeutics 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 United Insurance with a short position of Seres Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and Seres Therapeutics.
Diversification Opportunities for United Insurance and Seres Therapeutics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Seres is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and Seres Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seres Therapeutics and United Insurance 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 United Insurance Holdings are associated (or correlated) with Seres Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seres Therapeutics has no effect on the direction of United Insurance i.e., United Insurance and Seres Therapeutics go up and down completely randomly.
Pair Corralation between United Insurance and Seres Therapeutics
Assuming the 90 days horizon United Insurance Holdings is expected to generate 0.4 times more return on investment than Seres Therapeutics. However, United Insurance Holdings is 2.49 times less risky than Seres Therapeutics. It trades about -0.2 of its potential returns per unit of risk. Seres Therapeutics is currently generating about -0.29 per unit of risk. If you would invest 1,248 in United Insurance Holdings on October 25, 2024 and sell it today you would lose (88.00) from holding United Insurance Holdings or give up 7.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
United Insurance Holdings vs. Seres Therapeutics
Performance |
| Timeline |
| United Insurance Holdings |
| Seres Therapeutics |
United Insurance and Seres Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and Seres Therapeutics
The main advantage of trading using opposite United Insurance and Seres Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, Seres Therapeutics 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 Seres Therapeutics will offset losses from the drop in Seres Therapeutics' long position.| United Insurance vs. MOVIE GAMES SA | United Insurance vs. GAMESTOP | United Insurance vs. GigaMedia | United Insurance vs. PENN NATL GAMING |
| Seres Therapeutics vs. MOBILE FACTORY INC | Seres Therapeutics vs. Singapore Telecommunications Limited | Seres Therapeutics vs. Hua Hong Semiconductor | Seres Therapeutics vs. Geely Automobile Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |