Correlation Between United Fire and Keyence Corp
Can any of the company-specific risk be diversified away by investing in both United Fire and Keyence Corp 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 United Fire and Keyence Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Fire Group and Keyence Corp, you can compare the effects of market volatilities on United Fire and Keyence Corp 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 United Fire with a short position of Keyence Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Fire and Keyence Corp.
Diversification Opportunities for United Fire and Keyence Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Keyence is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Fire Group and Keyence Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence Corp and United Fire 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 United Fire Group are associated (or correlated) with Keyence Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence Corp has no effect on the direction of United Fire i.e., United Fire and Keyence Corp go up and down completely randomly.
Pair Corralation between United Fire and Keyence Corp
If you would invest 2,428 in United Fire Group on December 4, 2024 and sell it today you would earn a total of 357.00 from holding United Fire Group or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Fire Group vs. Keyence Corp
Performance |
| Timeline |
| United Fire Group |
| Keyence Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
United Fire and Keyence Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Fire and Keyence Corp
The main advantage of trading using opposite United Fire and Keyence Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Fire position performs unexpectedly, Keyence Corp 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 Keyence Corp will offset losses from the drop in Keyence Corp's long position.| United Fire vs. Donegal Group B | United Fire vs. Horace Mann Educators | United Fire vs. Donegal Group A | United Fire vs. Global Indemnity PLC |
| Keyence Corp vs. Rocky Brands | Keyence Corp vs. POSCO Holdings | Keyence Corp vs. Hudson Pacific Properties | Keyence Corp vs. Intuitive Surgical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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