Correlation Between Superior Plus and United Insurance
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and United Insurance Holdings, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and United Insurance.
Diversification Opportunities for Superior Plus and United Insurance
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and United is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and United Insurance go up and down completely randomly.
Pair Corralation between Superior Plus and United Insurance
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the United Insurance. In addition to that, Superior Plus is 1.32 times more volatile than United Insurance Holdings. It trades about -0.01 of its total potential returns per unit of risk. United Insurance Holdings is currently generating about 0.2 per unit of volatility. If you would invest 1,110 in United Insurance Holdings on August 28, 2024 and sell it today you would earn a total of 180.00 from holding United Insurance Holdings or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. United Insurance Holdings
Performance |
| Timeline |
| Superior Plus Corp |
| United Insurance Holdings |
Superior Plus and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and United Insurance
The main advantage of trading using opposite Superior Plus and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
| United Insurance vs. Superior Plus Corp | United Insurance vs. NMI Holdings | United Insurance vs. Origin Agritech | United Insurance vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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