Correlation Between United Insurance and SPARTAN STORES
Can any of the company-specific risk be diversified away by investing in both United Insurance and SPARTAN STORES 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 United Insurance and SPARTAN STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Insurance Holdings and SPARTAN STORES, you can compare the effects of market volatilities on United Insurance and SPARTAN STORES 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 SPARTAN STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and SPARTAN STORES.
Diversification Opportunities for United Insurance and SPARTAN STORES
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and SPARTAN is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance Holdings and SPARTAN STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPARTAN STORES 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 Holdings are associated (or correlated) with SPARTAN STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPARTAN STORES has no effect on the direction of United Insurance i.e., United Insurance and SPARTAN STORES go up and down completely randomly.
Pair Corralation between United Insurance and SPARTAN STORES
Assuming the 90 days horizon United Insurance Holdings is expected to generate 2.07 times more return on investment than SPARTAN STORES. However, United Insurance is 2.07 times more volatile than SPARTAN STORES. It trades about 0.06 of its potential returns per unit of risk. SPARTAN STORES is currently generating about -0.02 per unit of risk. If you would invest 662.00 in United Insurance Holdings on October 27, 2024 and sell it today you would earn a total of 488.00 from holding United Insurance Holdings or generate 73.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
United Insurance Holdings vs. SPARTAN STORES
Performance |
Timeline |
United Insurance Holdings |
SPARTAN STORES |
United Insurance and SPARTAN STORES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Insurance and SPARTAN STORES
The main advantage of trading using opposite United Insurance and SPARTAN STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, SPARTAN STORES 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 SPARTAN STORES will offset losses from the drop in SPARTAN STORES's long position.United Insurance vs. PICC Property and | United Insurance vs. Fairfax Financial Holdings | United Insurance vs. QBE Insurance Group | United Insurance vs. Insurance Australia Group |
SPARTAN STORES vs. Amkor Technology | SPARTAN STORES vs. Firan Technology Group | SPARTAN STORES vs. Minerals Technologies | SPARTAN STORES vs. RYANAIR HLDGS ADR |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |