Correlation Between United Fire and Oculis Holding
Can any of the company-specific risk be diversified away by investing in both United Fire and Oculis Holding 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 Oculis Holding 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 Oculis Holding AG, you can compare the effects of market volatilities on United Fire and Oculis Holding 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 Oculis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Fire and Oculis Holding.
Diversification Opportunities for United Fire and Oculis Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Oculis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Fire Group and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG 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 Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of United Fire i.e., United Fire and Oculis Holding go up and down completely randomly.
Pair Corralation between United Fire and Oculis Holding
Given the investment horizon of 90 days United Fire Group is expected to under-perform the Oculis Holding. But the stock apears to be less risky and, when comparing its historical volatility, United Fire Group is 4.74 times less risky than Oculis Holding. The stock trades about -0.37 of its potential returns per unit of risk. The Oculis Holding AG is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Oculis Holding AG on October 25, 2024 and sell it today you would earn a total of 580.00 from holding Oculis Holding AG or generate 111.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
United Fire Group vs. Oculis Holding AG
Performance |
| Timeline |
| United Fire Group |
| Oculis Holding AG |
United Fire and Oculis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Fire and Oculis Holding
The main advantage of trading using opposite United Fire and Oculis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Fire position performs unexpectedly, Oculis Holding 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 Oculis Holding will offset losses from the drop in Oculis Holding'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 |
| Oculis Holding vs. LAir Liquide SA | Oculis Holding vs. United Fire Group | Oculis Holding vs. Finnair Oyj | Oculis Holding vs. Pekin Life Insurance |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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