Correlation Between United Insurance and Sixt SE
Can any of the company-specific risk be diversified away by investing in both United Insurance and Sixt SE 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 Sixt SE 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 Sixt SE, you can compare the effects of market volatilities on United Insurance and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and Sixt SE.
Diversification Opportunities for United Insurance and Sixt SE
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and Sixt is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of United Insurance i.e., United Insurance and Sixt SE go up and down completely randomly.
Pair Corralation between United Insurance and Sixt SE
Assuming the 90 days horizon United Insurance Holdings is expected to generate 1.66 times more return on investment than Sixt SE. However, United Insurance is 1.66 times more volatile than Sixt SE. It trades about 0.2 of its potential returns per unit of risk. Sixt SE is currently generating about -0.09 per unit of risk. If you would invest 1,110 in United Insurance Holdings on September 3, 2024 and sell it today you would earn a total of 170.00 from holding United Insurance Holdings or generate 15.32% 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. Sixt SE
Performance |
| Timeline |
| United Insurance Holdings |
| Sixt SE |
United Insurance and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and Sixt SE
The main advantage of trading using opposite United Insurance and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.| United Insurance vs. The Progressive | United Insurance vs. The Allstate | United Insurance vs. PICC Property and | United Insurance vs. Fairfax Financial Holdings |
| Sixt SE vs. Zijin Mining Group | Sixt SE vs. Perseus Mining Limited | Sixt SE vs. United Insurance Holdings | Sixt SE vs. Insurance Australia Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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