Correlation Between United Insurance and CVW CLEANTECH
Can any of the company-specific risk be diversified away by investing in both United Insurance and CVW CLEANTECH 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 CVW CLEANTECH 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 CVW CLEANTECH INC, you can compare the effects of market volatilities on United Insurance and CVW CLEANTECH 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 CVW CLEANTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and CVW CLEANTECH.
Diversification Opportunities for United Insurance and CVW CLEANTECH
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and CVW is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and CVW CLEANTECH INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVW CLEANTECH INC 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 CVW CLEANTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVW CLEANTECH INC has no effect on the direction of United Insurance i.e., United Insurance and CVW CLEANTECH go up and down completely randomly.
Pair Corralation between United Insurance and CVW CLEANTECH
Assuming the 90 days horizon United Insurance Holdings is expected to generate 1.51 times more return on investment than CVW CLEANTECH. However, United Insurance is 1.51 times more volatile than CVW CLEANTECH INC. It trades about 0.09 of its potential returns per unit of risk. CVW CLEANTECH INC is currently generating about 0.01 per unit of risk. If you would invest 150.00 in United Insurance Holdings on October 13, 2024 and sell it today you would earn a total of 1,040 from holding United Insurance Holdings or generate 693.33% 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. CVW CLEANTECH INC
Performance |
| Timeline |
| United Insurance Holdings |
| CVW CLEANTECH INC |
United Insurance and CVW CLEANTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and CVW CLEANTECH
The main advantage of trading using opposite United Insurance and CVW CLEANTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, CVW CLEANTECH 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 CVW CLEANTECH will offset losses from the drop in CVW CLEANTECH's long position.| United Insurance vs. Guangdong Investment Limited | United Insurance vs. CompuGroup Medical SE | United Insurance vs. Japan Asia Investment | United Insurance vs. Apollo Investment Corp |
| CVW CLEANTECH vs. Virtu Financial | CVW CLEANTECH vs. Direct Line Insurance | CVW CLEANTECH vs. Synovus Financial Corp | CVW CLEANTECH 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world |