Correlation Between HighGold Mining and Unum

Can any of the company-specific risk be diversified away by investing in both HighGold Mining and Unum 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 HighGold Mining and Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HighGold Mining and Unum Group, you can compare the effects of market volatilities on HighGold Mining and Unum 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 HighGold Mining with a short position of Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of HighGold Mining and Unum.

Diversification Opportunities for HighGold Mining and Unum

0.0

Correlation Coefficient

HighGold Mining  Unum

Pay attention - limited upside

The 3 months correlation between HighGold and Unum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HighGold Mining and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group and HighGold Mining 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 HighGold Mining are associated (or correlated) with Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of HighGold Mining i.e., HighGold Mining and Unum go up and down completely randomly.

Pair Corralation between HighGold Mining and Unum

If you would invest  7,264  in Unum Group on December 29, 2024 and sell it today you would earn a total of  925.00  from holding Unum Group or generate 12.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

HighGold Mining  vs.  Unum Group

HighGold Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days HighGold Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HighGold Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Unum Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Unum Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Unum displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HighGold Mining and Unum

The main advantage of trading using opposite HighGold Mining and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HighGold Mining position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum's long position.

The idea behind HighGold Mining and Unum Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.