Correlation Between United Insurance and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both United Insurance and Goldman Sachs 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 Goldman Sachs 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 The Goldman Sachs, you can compare the effects of market volatilities on United Insurance and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and Goldman Sachs.
Diversification Opportunities for United Insurance and Goldman Sachs
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Goldman is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and The Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs has no effect on the direction of United Insurance i.e., United Insurance and Goldman Sachs go up and down completely randomly.
Pair Corralation between United Insurance and Goldman Sachs
Assuming the 90 days horizon United Insurance Holdings is expected to generate 3.44 times more return on investment than Goldman Sachs. However, United Insurance is 3.44 times more volatile than The Goldman Sachs. It trades about 0.09 of its potential returns per unit of risk. The Goldman Sachs is currently generating about 0.1 per unit of risk. If you would invest 215.00 in United Insurance Holdings on December 1, 2024 and sell it today you would earn a total of 995.00 from holding United Insurance Holdings or generate 462.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
United Insurance Holdings vs. The Goldman Sachs
Performance |
| Timeline |
| United Insurance Holdings |
| Goldman Sachs |
United Insurance and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and Goldman Sachs
The main advantage of trading using opposite United Insurance and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' 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 |
| Goldman Sachs vs. Playtech plc | Goldman Sachs vs. GLG LIFE TECH | Goldman Sachs vs. ASPEN TECHINC DL | Goldman Sachs vs. Beta Systems Software |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |