Correlation Between Gaming and United Insurance
Can any of the company-specific risk be diversified away by investing in both Gaming and United Insurance 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 Gaming and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming and Leisure and United Insurance Holdings, you can compare the effects of market volatilities on Gaming and United Insurance 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 Gaming with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and United Insurance.
Diversification Opportunities for Gaming and United Insurance
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaming and United is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Gaming and Leisure and United Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Insurance Holdings and Gaming 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 Gaming and Leisure are associated (or correlated) with United Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Insurance Holdings has no effect on the direction of Gaming i.e., Gaming and United Insurance go up and down completely randomly.
Pair Corralation between Gaming and United Insurance
Assuming the 90 days horizon Gaming and Leisure is expected to generate 0.44 times more return on investment than United Insurance. However, Gaming and Leisure is 2.26 times less risky than United Insurance. It trades about -0.13 of its potential returns per unit of risk. United Insurance Holdings is currently generating about -0.16 per unit of risk. If you would invest 4,700 in Gaming and Leisure on October 12, 2024 and sell it today you would lose (143.00) from holding Gaming and Leisure or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming and Leisure vs. United Insurance Holdings
Performance |
| Timeline |
| Gaming and Leisure |
| United Insurance Holdings |
Gaming and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming and United Insurance
The main advantage of trading using opposite Gaming and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming position performs unexpectedly, United Insurance 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 United Insurance will offset losses from the drop in United Insurance's long position.| Gaming vs. Singapore Airlines Limited | Gaming vs. Cars Inc | Gaming vs. CARSALESCOM | Gaming vs. SOUTHWEST AIRLINES |
| United Insurance vs. Austevoll Seafood ASA | United Insurance vs. RCI Hospitality Holdings | United Insurance vs. Wenzhou Kangning Hospital | United Insurance vs. COFCO Joycome 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |