Correlation Between EAST SIDE and United Insurance
Can any of the company-specific risk be diversified away by investing in both EAST SIDE 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 EAST SIDE and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAST SIDE GAMES and United Insurance Holdings, you can compare the effects of market volatilities on EAST SIDE 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 EAST SIDE with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST SIDE and United Insurance.
Diversification Opportunities for EAST SIDE and United Insurance
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EAST and United is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES 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 EAST SIDE 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 EAST SIDE GAMES 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 EAST SIDE i.e., EAST SIDE and United Insurance go up and down completely randomly.
Pair Corralation between EAST SIDE and United Insurance
Assuming the 90 days horizon EAST SIDE GAMES is expected to under-perform the United Insurance. In addition to that, EAST SIDE is 1.32 times more volatile than United Insurance Holdings. It trades about -0.07 of its total potential returns per unit of risk. United Insurance Holdings is currently generating about 0.12 per unit of volatility. If you would invest 922.00 in United Insurance Holdings on October 14, 2024 and sell it today you would earn a total of 268.00 from holding United Insurance Holdings or generate 29.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAST SIDE GAMES vs. United Insurance Holdings
Performance |
| Timeline |
| EAST SIDE GAMES |
| United Insurance Holdings |
EAST SIDE and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAST SIDE and United Insurance
The main advantage of trading using opposite EAST SIDE and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST SIDE 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.The idea behind EAST SIDE GAMES and United Insurance Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| United Insurance vs. PICC Property and | United Insurance vs. QBE Insurance Group | United Insurance vs. Superior Plus Corp | United Insurance vs. NMI Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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