Correlation Between Universal Insurance and ASSOC BR
Can any of the company-specific risk be diversified away by investing in both Universal Insurance and ASSOC BR 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 Universal Insurance and ASSOC BR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Insurance Holdings and ASSOC BR FOODS, you can compare the effects of market volatilities on Universal Insurance and ASSOC BR 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 Universal Insurance with a short position of ASSOC BR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Insurance and ASSOC BR.
Diversification Opportunities for Universal Insurance and ASSOC BR
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Universal and ASSOC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Universal Insurance Holdings and ASSOC BR FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASSOC BR FOODS and Universal 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 Universal Insurance Holdings are associated (or correlated) with ASSOC BR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASSOC BR FOODS has no effect on the direction of Universal Insurance i.e., Universal Insurance and ASSOC BR go up and down completely randomly.
Pair Corralation between Universal Insurance and ASSOC BR
Assuming the 90 days horizon Universal Insurance Holdings is expected to generate 1.11 times more return on investment than ASSOC BR. However, Universal Insurance is 1.11 times more volatile than ASSOC BR FOODS. It trades about 0.05 of its potential returns per unit of risk. ASSOC BR FOODS is currently generating about -0.14 per unit of risk. If you would invest 1,816 in Universal Insurance Holdings on November 2, 2024 and sell it today you would earn a total of 84.00 from holding Universal Insurance Holdings or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Insurance Holdings vs. ASSOC BR FOODS
Performance |
| Timeline |
| Universal Insurance |
| ASSOC BR FOODS |
Universal Insurance and ASSOC BR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Insurance and ASSOC BR
The main advantage of trading using opposite Universal Insurance and ASSOC BR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Insurance position performs unexpectedly, ASSOC BR 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 ASSOC BR will offset losses from the drop in ASSOC BR's long position.| Universal Insurance vs. Eurasia Mining Plc | Universal Insurance vs. De Grey Mining | Universal Insurance vs. Harmony Gold Mining | Universal Insurance vs. Scottish Mortgage Investment |
| ASSOC BR vs. Apollo Investment Corp | ASSOC BR vs. Cleanaway Waste Management | ASSOC BR vs. YATRA ONLINE DL 0001 | ASSOC BR vs. PennyMac Mortgage Investment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| CEOs Directory Screen CEOs from public companies around the world |