Correlation Between MARTIN and United Fire
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By analyzing existing cross correlation between MARTIN MARIETTA MATERIALS and United Fire Group, you can compare the effects of market volatilities on MARTIN 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 MARTIN with a short position of United Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARTIN and United Fire.
Diversification Opportunities for MARTIN and United Fire
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MARTIN and United is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MARTIN MARIETTA MATERIALS 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 MARTIN 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 MARTIN MARIETTA MATERIALS 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 MARTIN i.e., MARTIN and United Fire go up and down completely randomly.
Pair Corralation between MARTIN and United Fire
Assuming the 90 days trading horizon MARTIN MARIETTA MATERIALS is expected to under-perform the United Fire. But the bond apears to be less risky and, when comparing its historical volatility, MARTIN MARIETTA MATERIALS is 1.31 times less risky than United Fire. The bond trades about -0.25 of its potential returns per unit of risk. The United Fire Group is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 3,031 in United Fire Group on September 24, 2024 and sell it today you would lose (114.00) from holding United Fire Group or give up 3.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
MARTIN MARIETTA MATERIALS vs. United Fire Group
Performance |
Timeline |
MARTIN MARIETTA MATERIALS |
United Fire Group |
MARTIN and United Fire Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MARTIN and United Fire
The main advantage of trading using opposite MARTIN and United Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARTIN 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.MARTIN vs. United Fire Group | MARTIN vs. Direct Line Insurance | MARTIN vs. RadNet Inc | MARTIN vs. Siriuspoint |
United Fire vs. Cincinnati Financial | United Fire vs. Dover | United Fire vs. Franklin Resources | United Fire vs. Air Products and |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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