Correlation Between Unum and SSNT Old

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

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

Diversification Opportunities for Unum and SSNT Old

0.0

Correlation Coefficient

Unum  SSNT Old

Pay attention - limited upside

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

Pair Corralation between Unum and SSNT Old

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

Unum Group  vs.  SSNT Old

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.

SSNT Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SSNT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SSNT Old is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Unum and SSNT Old

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

The idea behind Unum Group and SSNT Old 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..