Correlation Between Unum and Four Leaf
Can any of the company-specific risk be diversified away by investing in both Unum and Four Leaf 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 Unum and Four Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unum Group and Four Leaf Acquisition, you can compare the effects of market volatilities on Unum and Four Leaf 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 Unum with a short position of Four Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unum and Four Leaf.
Diversification Opportunities for Unum and Four Leaf
Very weak diversification
The 3 months correlation between Unum and Four is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Unum Group and Four Leaf Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Leaf Acquisition and Unum 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 Unum Group are associated (or correlated) with Four Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Leaf Acquisition has no effect on the direction of Unum i.e., Unum and Four Leaf go up and down completely randomly.
Pair Corralation between Unum and Four Leaf
If you would invest 7,278 in Unum Group on October 24, 2024 and sell it today you would earn a total of 220.00 from holding Unum Group or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unum Group vs. Four Leaf Acquisition
Performance |
| Timeline |
| Unum Group |
| Four Leaf Acquisition |
Unum and Four Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unum and Four Leaf
The main advantage of trading using opposite Unum and Four Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unum position performs unexpectedly, Four Leaf 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 Four Leaf will offset losses from the drop in Four Leaf's long position.| Unum vs. Prudential Financial | Unum vs. MetLife | Unum vs. Jackson Financial | Unum vs. Manulife Financial Corp |
| Four Leaf vs. Unum Group | Four Leaf vs. Pinterest | Four Leaf vs. FG Annuities Life | Four Leaf vs. KVH Industries |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |