Correlation Between United Insurance and Jubilee Life
Can any of the company-specific risk be diversified away by investing in both United Insurance and Jubilee Life 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 Jubilee Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Insurance and Jubilee Life Insurance, you can compare the effects of market volatilities on United Insurance and Jubilee Life 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 Jubilee Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Insurance and Jubilee Life.
Diversification Opportunities for United Insurance and Jubilee Life
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and Jubilee is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding United Insurance and Jubilee Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilee Life Insurance 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 are associated (or correlated) with Jubilee Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilee Life Insurance has no effect on the direction of United Insurance i.e., United Insurance and Jubilee Life go up and down completely randomly.
Pair Corralation between United Insurance and Jubilee Life
Assuming the 90 days trading horizon United Insurance is expected to generate 0.59 times more return on investment than Jubilee Life. However, United Insurance is 1.69 times less risky than Jubilee Life. It trades about -0.02 of its potential returns per unit of risk. Jubilee Life Insurance is currently generating about -0.05 per unit of risk. If you would invest 1,633 in United Insurance on October 16, 2024 and sell it today you would lose (13.00) from holding United Insurance or give up 0.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
United Insurance vs. Jubilee Life Insurance
Performance |
Timeline |
United Insurance |
Jubilee Life Insurance |
United Insurance and Jubilee Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Insurance and Jubilee Life
The main advantage of trading using opposite United Insurance and Jubilee Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Insurance position performs unexpectedly, Jubilee Life 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 Jubilee Life will offset losses from the drop in Jubilee Life's long position.United Insurance vs. Engro Polymer Chemicals | United Insurance vs. ORIX Leasing Pakistan | United Insurance vs. Fateh Sports Wear | United Insurance vs. Sardar Chemical Industries |
Jubilee Life vs. MCB Bank | Jubilee Life vs. Atlas Insurance | Jubilee Life vs. Century Insurance | Jubilee Life vs. Shaheen Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |