Correlation Between United Insurance and Air Link
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By analyzing existing cross correlation between United Insurance and Air Link Communication, you can compare the effects of market volatilities on United Insurance and Air Link 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 Insurance with a short position of Air Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and Air Link.
Diversification Opportunities for United Insurance and Air Link
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Air is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance and Air Link Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Link Communication and United Insurance 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 Insurance are associated (or correlated) with Air Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Link Communication has no effect on the direction of United Insurance i.e., United Insurance and Air Link go up and down completely randomly.
Pair Corralation between United Insurance and Air Link
Assuming the 90 days trading horizon United Insurance is expected to generate 2.43 times less return on investment than Air Link. But when comparing it to its historical volatility, United Insurance is 1.44 times less risky than Air Link. It trades about 0.1 of its potential returns per unit of risk. Air Link Communication is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,866 in Air Link Communication on August 31, 2024 and sell it today you would earn a total of 11,768 from holding Air Link Communication or generate 630.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.62% |
| Values | Daily Returns |
United Insurance vs. Air Link Communication
Performance |
| Timeline |
| United Insurance |
| Air Link Communication |
United Insurance and Air Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and Air Link
The main advantage of trading using opposite United Insurance and Air Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, Air Link 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 Air Link will offset losses from the drop in Air Link's long position.| United Insurance vs. Habib Bank | United Insurance vs. National Bank of | United Insurance vs. United Bank | United Insurance vs. MCB Bank |
| Air Link vs. Habib Insurance | Air Link vs. Century Insurance | Air Link vs. Reliance Weaving Mills | Air Link vs. Media Times |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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