Correlation Between United Insurance and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both United Insurance and PICKN PAY 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 PICKN PAY 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 PICKN PAY STORES, you can compare the effects of market volatilities on United Insurance and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and PICKN PAY.
Diversification Opportunities for United Insurance and PICKN PAY
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and PICKN is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of United Insurance i.e., United Insurance and PICKN PAY go up and down completely randomly.
Pair Corralation between United Insurance and PICKN PAY
Assuming the 90 days horizon United Insurance Holdings is expected to under-perform the PICKN PAY. In addition to that, United Insurance is 1.94 times more volatile than PICKN PAY STORES. It trades about -0.11 of its total potential returns per unit of risk. PICKN PAY STORES is currently generating about 0.01 per unit of volatility. If you would invest 157.00 in PICKN PAY STORES on October 11, 2024 and sell it today you would earn a total of 0.00 from holding PICKN PAY STORES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Insurance Holdings vs. PICKN PAY STORES
Performance |
| Timeline |
| United Insurance Holdings |
| PICKN PAY STORES |
United Insurance and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and PICKN PAY
The main advantage of trading using opposite United Insurance and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's long position.| United Insurance vs. PT Wintermar Offshore | United Insurance vs. WT OFFSHORE | United Insurance vs. New Residential Investment | United Insurance vs. SIEM OFFSHORE NEW |
| PICKN PAY vs. Direct Line Insurance | PICKN PAY vs. United Insurance Holdings | PICKN PAY vs. DONGJIANG ENVIRONMENTAL H | PICKN PAY vs. SUN LIFE FINANCIAL |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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