Correlation Between United Insurance and SCHOTT Pharma
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By analyzing existing cross correlation between United Insurance Holdings and SCHOTT Pharma AG, you can compare the effects of market volatilities on United Insurance and SCHOTT Pharma 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 SCHOTT Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and SCHOTT Pharma.
Diversification Opportunities for United Insurance and SCHOTT Pharma
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and SCHOTT is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and SCHOTT Pharma AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHOTT Pharma AG 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 SCHOTT Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHOTT Pharma AG has no effect on the direction of United Insurance i.e., United Insurance and SCHOTT Pharma go up and down completely randomly.
Pair Corralation between United Insurance and SCHOTT Pharma
Assuming the 90 days horizon United Insurance Holdings is expected to generate 2.43 times more return on investment than SCHOTT Pharma. However, United Insurance is 2.43 times more volatile than SCHOTT Pharma AG. It trades about 0.2 of its potential returns per unit of risk. SCHOTT Pharma AG is currently generating about -0.21 per unit of risk. If you would invest 1,100 in United Insurance Holdings on September 2, 2024 and sell it today you would earn a total of 180.00 from holding United Insurance Holdings or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Insurance Holdings vs. SCHOTT Pharma AG
Performance |
| Timeline |
| United Insurance Holdings |
| SCHOTT Pharma AG |
United Insurance and SCHOTT Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and SCHOTT Pharma
The main advantage of trading using opposite United Insurance and SCHOTT Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, SCHOTT Pharma 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 SCHOTT Pharma will offset losses from the drop in SCHOTT Pharma's long position.The idea behind United Insurance Holdings and SCHOTT Pharma AG 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.| SCHOTT Pharma vs. HK Electric Investments | SCHOTT Pharma vs. MCEWEN MINING INC | SCHOTT Pharma vs. PennantPark Investment | SCHOTT Pharma vs. United Insurance 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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