Correlation Between Unum and WT Offshore
Can any of the company-specific risk be diversified away by investing in both Unum and WT Offshore 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 WT Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unum Group and WT Offshore, you can compare the effects of market volatilities on Unum and WT Offshore 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 WT Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unum and WT Offshore.
Diversification Opportunities for Unum and WT Offshore
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unum and WTI is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Unum Group and WT Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT Offshore 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 WT Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT Offshore has no effect on the direction of Unum i.e., Unum and WT Offshore go up and down completely randomly.
Pair Corralation between Unum and WT Offshore
Considering the 90-day investment horizon Unum Group is expected to generate 0.28 times more return on investment than WT Offshore. However, Unum Group is 3.61 times less risky than WT Offshore. It trades about -0.03 of its potential returns per unit of risk. WT Offshore is currently generating about -0.03 per unit of risk. If you would invest 7,584 in Unum Group on October 23, 2024 and sell it today you would lose (86.00) from holding Unum Group or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unum Group vs. WT Offshore
Performance |
| Timeline |
| Unum Group |
| WT Offshore |
Unum and WT Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unum and WT Offshore
The main advantage of trading using opposite Unum and WT Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unum position performs unexpectedly, WT Offshore 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 WT Offshore will offset losses from the drop in WT Offshore's long position.| Unum vs. Prudential Financial | Unum vs. MetLife | Unum vs. Jackson Financial | Unum vs. Manulife Financial Corp |
| WT Offshore vs. Evolution Petroleum | WT Offshore vs. Ring Energy | WT Offshore vs. Gran Tierra Energy | WT Offshore vs. Permian Resources |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |