Correlation Between JOHN HOLT and UNIVERSAL INSURANCE
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By analyzing existing cross correlation between JOHN HOLT PLC and UNIVERSAL INSURANCE PANY, you can compare the effects of market volatilities on JOHN HOLT and UNIVERSAL 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 JOHN HOLT with a short position of UNIVERSAL INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JOHN HOLT and UNIVERSAL INSURANCE.
Diversification Opportunities for JOHN HOLT and UNIVERSAL INSURANCE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JOHN and UNIVERSAL is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JOHN HOLT PLC and UNIVERSAL INSURANCE PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIVERSAL INSURANCE PANY and JOHN HOLT 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 JOHN HOLT PLC are associated (or correlated) with UNIVERSAL INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIVERSAL INSURANCE PANY has no effect on the direction of JOHN HOLT i.e., JOHN HOLT and UNIVERSAL INSURANCE go up and down completely randomly.
Pair Corralation between JOHN HOLT and UNIVERSAL INSURANCE
Assuming the 90 days trading horizon JOHN HOLT PLC is expected to generate 0.93 times more return on investment than UNIVERSAL INSURANCE. However, JOHN HOLT PLC is 1.08 times less risky than UNIVERSAL INSURANCE. It trades about 0.27 of its potential returns per unit of risk. UNIVERSAL INSURANCE PANY is currently generating about -0.01 per unit of risk. If you would invest 219.00 in JOHN HOLT PLC on August 27, 2024 and sell it today you would earn a total of 881.00 from holding JOHN HOLT PLC or generate 402.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
JOHN HOLT PLC vs. UNIVERSAL INSURANCE PANY
Performance |
| Timeline |
| JOHN HOLT PLC |
| UNIVERSAL INSURANCE PANY |
JOHN HOLT and UNIVERSAL INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JOHN HOLT and UNIVERSAL INSURANCE
The main advantage of trading using opposite JOHN HOLT and UNIVERSAL INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JOHN HOLT position performs unexpectedly, UNIVERSAL 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 UNIVERSAL INSURANCE will offset losses from the drop in UNIVERSAL INSURANCE's long position.| JOHN HOLT vs. UNIVERSAL INSURANCE PANY | JOHN HOLT vs. ECOBANK TRANSNATIONAL INCORPORATED | JOHN HOLT vs. FIDSON HEALTHCARE PLC | JOHN HOLT vs. AIICO INSURANCE PLC |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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