Correlation Between REGAL ASIAN and United Insurance
Can any of the company-specific risk be diversified away by investing in both REGAL ASIAN 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 REGAL ASIAN and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL ASIAN INVESTMENTS and United Insurance Holdings, you can compare the effects of market volatilities on REGAL ASIAN 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 REGAL ASIAN with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL ASIAN and United Insurance.
Diversification Opportunities for REGAL ASIAN and United Insurance
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between REGAL and United is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding REGAL ASIAN INVESTMENTS 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 REGAL ASIAN 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 REGAL ASIAN INVESTMENTS 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 REGAL ASIAN i.e., REGAL ASIAN and United Insurance go up and down completely randomly.
Pair Corralation between REGAL ASIAN and United Insurance
Assuming the 90 days trading horizon REGAL ASIAN INVESTMENTS is expected to under-perform the United Insurance. But the stock apears to be less risky and, when comparing its historical volatility, REGAL ASIAN INVESTMENTS is 1.86 times less risky than United Insurance. The stock trades about -0.29 of its potential returns per unit of risk. The United Insurance Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,230 in United Insurance Holdings on September 15, 2024 and sell it today you would earn a total of 80.00 from holding United Insurance Holdings or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL ASIAN INVESTMENTS vs. United Insurance Holdings
Performance |
| Timeline |
| REGAL ASIAN INVESTMENTS |
| United Insurance Holdings |
REGAL ASIAN and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL ASIAN and United Insurance
The main advantage of trading using opposite REGAL ASIAN and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL ASIAN 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.| REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc | REGAL ASIAN vs. Apple Inc |
| United Insurance vs. Insurance Australia Group | United Insurance vs. Superior Plus Corp | United Insurance vs. SIVERS SEMICONDUCTORS AB | United Insurance vs. CHINA HUARONG ENERHD 50 |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |