Correlation Between 36262GAD3 and United Fire
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By analyzing existing cross correlation between GXO 265 15 JUL 31 and United Fire Group, you can compare the effects of market volatilities on 36262GAD3 and United Fire 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 36262GAD3 with a short position of United Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36262GAD3 and United Fire.
Diversification Opportunities for 36262GAD3 and United Fire
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 36262GAD3 and United is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding GXO 265 15 JUL 31 and United Fire Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Fire Group and 36262GAD3 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 GXO 265 15 JUL 31 are associated (or correlated) with United Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Fire Group has no effect on the direction of 36262GAD3 i.e., 36262GAD3 and United Fire go up and down completely randomly.
Pair Corralation between 36262GAD3 and United Fire
Assuming the 90 days trading horizon GXO 265 15 JUL 31 is expected to under-perform the United Fire. But the bond apears to be less risky and, when comparing its historical volatility, GXO 265 15 JUL 31 is 2.17 times less risky than United Fire. The bond trades about -0.21 of its potential returns per unit of risk. The United Fire Group is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,932 in United Fire Group on September 4, 2024 and sell it today you would earn a total of 1,152 from holding United Fire Group or generate 59.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
GXO 265 15 JUL 31 vs. United Fire Group
Performance |
| Timeline |
| GXO 265 15 |
| United Fire Group |
36262GAD3 and United Fire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36262GAD3 and United Fire
The main advantage of trading using opposite 36262GAD3 and United Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36262GAD3 position performs unexpectedly, United Fire 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 United Fire will offset losses from the drop in United Fire's long position.| 36262GAD3 vs. AEP TEX INC | 36262GAD3 vs. US BANK NATIONAL | 36262GAD3 vs. MetLife | 36262GAD3 vs. Brera Holdings PLC |
| United Fire vs. Donegal Group B | United Fire vs. Horace Mann Educators | United Fire vs. Donegal Group A | United Fire vs. Global Indemnity PLC |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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