Correlation Between United Insurance and JS Global
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By analyzing existing cross correlation between United Insurance and JS Global Banking, you can compare the effects of market volatilities on United Insurance and JS Global 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 JS Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and JS Global.
Diversification Opportunities for United Insurance and JS Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and JSGBETF is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance and JS Global Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Global Banking 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 JS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Global Banking has no effect on the direction of United Insurance i.e., United Insurance and JS Global go up and down completely randomly.
Pair Corralation between United Insurance and JS Global
Assuming the 90 days trading horizon United Insurance is expected to generate 1.95 times more return on investment than JS Global. However, United Insurance is 1.95 times more volatile than JS Global Banking. It trades about 0.21 of its potential returns per unit of risk. JS Global Banking is currently generating about 0.02 per unit of risk. If you would invest 1,630 in United Insurance on November 28, 2024 and sell it today you would earn a total of 168.00 from holding United Insurance or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
United Insurance vs. JS Global Banking
Performance |
| Timeline |
| United Insurance |
| JS Global Banking |
United Insurance and JS Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Insurance and JS Global
The main advantage of trading using opposite United Insurance and JS Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, JS Global 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 JS Global will offset losses from the drop in JS Global's long position.| United Insurance vs. National Foods | United Insurance vs. Sindh Modaraba Management | United Insurance vs. Standard Chartered Bank | United Insurance vs. Shaheen Insurance |
| JS Global vs. National Foods | JS Global vs. Unilever Pakistan Foods | JS Global vs. Matco Foods | JS Global vs. First Fidelity Leasing |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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