Correlation Between United Insurance and KAUFMAN ET
Can any of the company-specific risk be diversified away by investing in both United Insurance and KAUFMAN ET 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 KAUFMAN ET 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 KAUFMAN ET BROAD, you can compare the effects of market volatilities on United Insurance and KAUFMAN ET 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 KAUFMAN ET. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and KAUFMAN ET.
Diversification Opportunities for United Insurance and KAUFMAN ET
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and KAUFMAN is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and KAUFMAN ET BROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAUFMAN ET BROAD 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 KAUFMAN ET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAUFMAN ET BROAD has no effect on the direction of United Insurance i.e., United Insurance and KAUFMAN ET go up and down completely randomly.
Pair Corralation between United Insurance and KAUFMAN ET
Assuming the 90 days horizon United Insurance Holdings is expected to under-perform the KAUFMAN ET. In addition to that, United Insurance is 1.58 times more volatile than KAUFMAN ET BROAD. It trades about -0.14 of its total potential returns per unit of risk. KAUFMAN ET BROAD is currently generating about 0.08 per unit of volatility. If you would invest 3,155 in KAUFMAN ET BROAD on October 14, 2024 and sell it today you would earn a total of 55.00 from holding KAUFMAN ET BROAD or generate 1.74% 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. KAUFMAN ET BROAD
Performance |
| Timeline |
| United Insurance Holdings |
| KAUFMAN ET BROAD |
United Insurance and KAUFMAN ET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and KAUFMAN ET
The main advantage of trading using opposite United Insurance and KAUFMAN ET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, KAUFMAN ET 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 KAUFMAN ET will offset losses from the drop in KAUFMAN ET's long position.| United Insurance vs. Guangdong Investment Limited | United Insurance vs. CompuGroup Medical SE | United Insurance vs. Japan Asia Investment | United Insurance vs. Apollo Investment Corp |
| KAUFMAN ET vs. SINGAPORE AIRLINES | KAUFMAN ET vs. Nok Airlines PCL | KAUFMAN ET vs. United Insurance Holdings | KAUFMAN ET vs. Southwest Airlines Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |