Correlation Between TROPHY GAMES and United Insurance
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES 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 TROPHY GAMES and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and United Insurance Holdings, you can compare the effects of market volatilities on TROPHY GAMES 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 TROPHY GAMES with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and United Insurance.
Diversification Opportunities for TROPHY GAMES and United Insurance
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TROPHY and United is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV 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 TROPHY GAMES 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 TROPHY GAMES DEV 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 TROPHY GAMES i.e., TROPHY GAMES and United Insurance go up and down completely randomly.
Pair Corralation between TROPHY GAMES and United Insurance
Assuming the 90 days horizon TROPHY GAMES DEV is expected to under-perform the United Insurance. But the stock apears to be less risky and, when comparing its historical volatility, TROPHY GAMES DEV is 1.46 times less risky than United Insurance. The stock trades about -0.1 of its potential returns per unit of risk. The United Insurance Holdings is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,100 in United Insurance Holdings on September 1, 2024 and sell it today you would earn a total of 180.00 from holding United Insurance Holdings or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. United Insurance Holdings
Performance |
| Timeline |
| TROPHY GAMES DEV |
| United Insurance Holdings |
TROPHY GAMES and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and United Insurance
The main advantage of trading using opposite TROPHY GAMES and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES 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.| TROPHY GAMES vs. Nintendo Co | TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. Superior Plus Corp | TROPHY GAMES vs. NMI Holdings |
| United Insurance vs. The Progressive | United Insurance vs. Fairfax Financial Holdings | United Insurance 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |