Correlation Between UET United and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both UET United and SBI 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 UET United and SBI Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UET United Electronic and SBI Insurance Group, you can compare the effects of market volatilities on UET United and SBI 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 UET United with a short position of SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and SBI Insurance.
Diversification Opportunities for UET United and SBI Insurance
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UET and SBI is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance Group and UET United 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 UET United Electronic are associated (or correlated) with SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of UET United i.e., UET United and SBI Insurance go up and down completely randomly.
Pair Corralation between UET United and SBI Insurance
Assuming the 90 days trading horizon UET United Electronic is expected to under-perform the SBI Insurance. In addition to that, UET United is 1.1 times more volatile than SBI Insurance Group. It trades about -0.01 of its total potential returns per unit of risk. SBI Insurance Group is currently generating about 0.2 per unit of volatility. If you would invest 650.00 in SBI Insurance Group on November 29, 2024 and sell it today you would earn a total of 55.00 from holding SBI Insurance Group or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UET United Electronic vs. SBI Insurance Group
Performance |
| Timeline |
| UET United Electronic |
| SBI Insurance Group |
UET United and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and SBI Insurance
The main advantage of trading using opposite UET United and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United position performs unexpectedly, SBI 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| UET United vs. MOVIE GAMES SA | UET United vs. CeoTronics AG | UET United vs. PENN NATL GAMING | UET United vs. AGF Management Limited |
| SBI Insurance vs. COREBRIDGE FINANCIAL INC | SBI Insurance vs. PRINCIPAL FINANCIAL | SBI Insurance vs. BANK OCHINA H | SBI Insurance vs. GAZTRTECHNIUADR15EO01 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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