Correlation Between United Insurance and TROPHY GAMES
Can any of the company-specific risk be diversified away by investing in both United Insurance and TROPHY GAMES 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 TROPHY GAMES 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 TROPHY GAMES DEV, you can compare the effects of market volatilities on United Insurance and TROPHY GAMES 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 TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and TROPHY GAMES.
Diversification Opportunities for United Insurance and TROPHY GAMES
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and TROPHY is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of United Insurance i.e., United Insurance and TROPHY GAMES go up and down completely randomly.
Pair Corralation between United Insurance and TROPHY GAMES
Assuming the 90 days horizon United Insurance Holdings is expected to generate 1.2 times more return on investment than TROPHY GAMES. However, United Insurance is 1.2 times more volatile than TROPHY GAMES DEV. It trades about 0.08 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about 0.04 per unit of risk. If you would invest 265.00 in United Insurance Holdings on December 1, 2024 and sell it today you would earn a total of 945.00 from holding United Insurance Holdings or generate 356.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Insurance Holdings vs. TROPHY GAMES DEV
Performance |
| Timeline |
| United Insurance Holdings |
| TROPHY GAMES DEV |
United Insurance and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and TROPHY GAMES
The main advantage of trading using opposite United Insurance and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, TROPHY GAMES 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES's long position.| United Insurance vs. GREENX METALS LTD | United Insurance vs. JD SPORTS FASH | United Insurance vs. HUTCHISON TELECOMM | United Insurance vs. Cairo Communication SpA |
| TROPHY GAMES vs. H2O Retailing | TROPHY GAMES vs. Cars Inc | TROPHY GAMES vs. WT OFFSHORE | TROPHY GAMES vs. FAST RETAIL ADR |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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