Correlation Between United Insurance and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both United Insurance and JSC Halyk 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 JSC Halyk 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 JSC Halyk bank, you can compare the effects of market volatilities on United Insurance and JSC Halyk 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 JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and JSC Halyk.
Diversification Opportunities for United Insurance and JSC Halyk
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and JSC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank 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 JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of United Insurance i.e., United Insurance and JSC Halyk go up and down completely randomly.
Pair Corralation between United Insurance and JSC Halyk
Assuming the 90 days horizon United Insurance Holdings is expected to generate 1.91 times more return on investment than JSC Halyk. However, United Insurance is 1.91 times more volatile than JSC Halyk bank. It trades about 0.09 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.07 per unit of risk. If you would invest 151.00 in United Insurance Holdings on October 15, 2024 and sell it today you would earn a total of 1,039 from holding United Insurance Holdings or generate 688.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Insurance Holdings vs. JSC Halyk bank
Performance |
| Timeline |
| United Insurance Holdings |
| JSC Halyk bank |
United Insurance and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and JSC Halyk
The main advantage of trading using opposite United Insurance and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| United Insurance vs. VITEC SOFTWARE GROUP | United Insurance vs. Easy Software AG | United Insurance vs. ASURE SOFTWARE | United Insurance vs. Constellation Software |
| JSC Halyk vs. Discover Financial Services | JSC Halyk vs. Liberty Broadband | JSC Halyk vs. COPLAND ROAD CAPITAL | JSC Halyk vs. Gaztransport Technigaz SA |
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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