Correlation Between United Insurance and Gaming
Can any of the company-specific risk be diversified away by investing in both United Insurance and Gaming 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 Gaming 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 Gaming and Leisure, you can compare the effects of market volatilities on United Insurance and Gaming 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 Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and Gaming.
Diversification Opportunities for United Insurance and Gaming
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Gaming is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and Gaming and Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming and Leisure 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 Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming and Leisure has no effect on the direction of United Insurance i.e., United Insurance and Gaming go up and down completely randomly.
Pair Corralation between United Insurance and Gaming
Assuming the 90 days horizon United Insurance Holdings is expected to under-perform the Gaming. In addition to that, United Insurance is 2.26 times more volatile than Gaming and Leisure. It trades about -0.16 of its total potential returns per unit of risk. Gaming and Leisure is currently generating about -0.13 per unit of volatility. If you would invest 4,700 in Gaming and Leisure on October 12, 2024 and sell it today you would lose (143.00) from holding Gaming and Leisure or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Insurance Holdings vs. Gaming and Leisure
Performance |
| Timeline |
| United Insurance Holdings |
| Gaming and Leisure |
United Insurance and Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and Gaming
The main advantage of trading using opposite United Insurance and Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, Gaming 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 Gaming will offset losses from the drop in Gaming's long position.| United Insurance vs. Austevoll Seafood ASA | United Insurance vs. RCI Hospitality Holdings | United Insurance vs. Wenzhou Kangning Hospital | United Insurance vs. COFCO Joycome Foods |
| Gaming vs. Singapore Airlines Limited | Gaming vs. Cars Inc | Gaming vs. CARSALESCOM | Gaming vs. SOUTHWEST AIRLINES |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |