Correlation Between Union Insurance and SuperAlloy Industrial
Can any of the company-specific risk be diversified away by investing in both Union Insurance and SuperAlloy Industrial 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 Union Insurance and SuperAlloy Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Insurance Co and SuperAlloy Industrial Co,, you can compare the effects of market volatilities on Union Insurance and SuperAlloy Industrial 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 Union Insurance with a short position of SuperAlloy Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Insurance and SuperAlloy Industrial.
Diversification Opportunities for Union Insurance and SuperAlloy Industrial
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Union and SuperAlloy is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Union Insurance Co and SuperAlloy Industrial Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuperAlloy Industrial Co, and Union 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 Union Insurance Co are associated (or correlated) with SuperAlloy Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuperAlloy Industrial Co, has no effect on the direction of Union Insurance i.e., Union Insurance and SuperAlloy Industrial go up and down completely randomly.
Pair Corralation between Union Insurance and SuperAlloy Industrial
Assuming the 90 days trading horizon Union Insurance Co is expected to generate 1.18 times more return on investment than SuperAlloy Industrial. However, Union Insurance is 1.18 times more volatile than SuperAlloy Industrial Co,. It trades about 0.07 of its potential returns per unit of risk. SuperAlloy Industrial Co, is currently generating about 0.04 per unit of risk. If you would invest 1,610 in Union Insurance Co on October 13, 2024 and sell it today you would earn a total of 1,625 from holding Union Insurance Co or generate 100.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Union Insurance Co vs. SuperAlloy Industrial Co,
Performance |
| Timeline |
| Union Insurance |
| SuperAlloy Industrial Co, |
Union Insurance and SuperAlloy Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Insurance and SuperAlloy Industrial
The main advantage of trading using opposite Union Insurance and SuperAlloy Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Insurance position performs unexpectedly, SuperAlloy Industrial 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 SuperAlloy Industrial will offset losses from the drop in SuperAlloy Industrial's long position.| Union Insurance vs. Shinkong Insurance Co | Union Insurance vs. Central Reinsurance Corp | Union Insurance vs. Taiwan Fire Marine | Union Insurance vs. Taichung Commercial Bank |
| SuperAlloy Industrial vs. Yuanta Financial Holdings | SuperAlloy Industrial vs. First Insurance Co | SuperAlloy Industrial vs. Union Insurance Co | SuperAlloy Industrial vs. Wei Chuan Foods |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |