Correlation Between United Fire and GENERAL
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By analyzing existing cross correlation between United Fire Group and GENERAL ELEC CAP, you can compare the effects of market volatilities on United Fire and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Fire and GENERAL.
Diversification Opportunities for United Fire and GENERAL
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and GENERAL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding United Fire Group and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of United Fire i.e., United Fire and GENERAL go up and down completely randomly.
Pair Corralation between United Fire and GENERAL
Given the investment horizon of 90 days United Fire Group is expected to generate 0.7 times more return on investment than GENERAL. However, United Fire Group is 1.42 times less risky than GENERAL. It trades about 0.42 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about 0.11 per unit of risk. If you would invest 2,490 in United Fire Group on September 15, 2024 and sell it today you would earn a total of 595.00 from holding United Fire Group or generate 23.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
United Fire Group vs. GENERAL ELEC CAP
Performance |
| Timeline |
| United Fire Group |
| GENERAL ELEC CAP |
United Fire and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Fire and GENERAL
The main advantage of trading using opposite United Fire and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Fire position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| United Fire vs. W R Berkley | United Fire vs. Markel | United Fire vs. RLI Corp | United Fire vs. CNA Financial |
| GENERAL vs. Teleflex Incorporated | GENERAL vs. Amgen Inc | GENERAL vs. Merit Medical Systems | GENERAL vs. United Fire Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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