Correlation Between Grupo Media and United Insurance
Can any of the company-specific risk be diversified away by investing in both Grupo Media 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 Grupo Media and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Media Capital and United Insurance Holdings, you can compare the effects of market volatilities on Grupo Media 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 Grupo Media with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Media and United Insurance.
Diversification Opportunities for Grupo Media and United Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Media Capital 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 Grupo Media 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 Grupo Media Capital 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 Grupo Media i.e., Grupo Media and United Insurance go up and down completely randomly.
Pair Corralation between Grupo Media and United Insurance
If you would invest 989.00 in United Insurance Holdings on November 3, 2024 and sell it today you would earn a total of 201.00 from holding United Insurance Holdings or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Grupo Media Capital vs. United Insurance Holdings
Performance |
| Timeline |
| Grupo Media Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United Insurance Holdings |
Grupo Media and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Media and United Insurance
The main advantage of trading using opposite Grupo Media and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Media 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.| Grupo Media vs. National Retail Properties | Grupo Media vs. CarsalesCom | Grupo Media vs. Flutter Entertainment PLC | Grupo Media vs. SALESFORCE INC CDR |
| United Insurance vs. Take Two Interactive Software | United Insurance vs. Beta Systems Software | United Insurance vs. Easy Software AG | United Insurance vs. ASURE SOFTWARE |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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