Correlation Between United Insurance and CHINA EDUCATION
Can any of the company-specific risk be diversified away by investing in both United Insurance and CHINA EDUCATION 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 CHINA EDUCATION 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 CHINA EDUCATION GROUP, you can compare the effects of market volatilities on United Insurance and CHINA EDUCATION 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 CHINA EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and CHINA EDUCATION.
Diversification Opportunities for United Insurance and CHINA EDUCATION
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and CHINA is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and CHINA EDUCATION GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA EDUCATION GROUP 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 CHINA EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA EDUCATION GROUP has no effect on the direction of United Insurance i.e., United Insurance and CHINA EDUCATION go up and down completely randomly.
Pair Corralation between United Insurance and CHINA EDUCATION
Assuming the 90 days horizon United Insurance Holdings is expected to generate 1.1 times more return on investment than CHINA EDUCATION. However, United Insurance is 1.1 times more volatile than CHINA EDUCATION GROUP. It trades about -0.06 of its potential returns per unit of risk. CHINA EDUCATION GROUP is currently generating about -0.21 per unit of risk. If you would invest 1,200 in United Insurance Holdings on October 22, 2024 and sell it today you would lose (30.00) from holding United Insurance Holdings or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Insurance Holdings vs. CHINA EDUCATION GROUP
Performance |
| Timeline |
| United Insurance Holdings |
| CHINA EDUCATION GROUP |
United Insurance and CHINA EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and CHINA EDUCATION
The main advantage of trading using opposite United Insurance and CHINA EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, CHINA EDUCATION 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 CHINA EDUCATION will offset losses from the drop in CHINA EDUCATION's long position.| United Insurance vs. MagnaChip Semiconductor Corp | United Insurance vs. AUSNUTRIA DAIRY | United Insurance vs. PATTIES FOODS | United Insurance vs. Tyson Foods |
| CHINA EDUCATION vs. LOANDEPOT INC A | CHINA EDUCATION vs. Air Lease | CHINA EDUCATION vs. FUYO GENERAL LEASE | CHINA EDUCATION 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |