Correlation Between Akamai Technologies and United Insurance
Can any of the company-specific risk be diversified away by investing in both Akamai Technologies and United Insurance 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 Akamai Technologies and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akamai Technologies and United Insurance Holdings, you can compare the effects of market volatilities on Akamai Technologies and United Insurance 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 Akamai Technologies with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akamai Technologies and United Insurance.
Diversification Opportunities for Akamai Technologies and United Insurance
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Akamai and United is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Akamai Technologies and United Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Insurance Holdings and Akamai Technologies 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 Akamai Technologies are associated (or correlated) with United Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Insurance Holdings has no effect on the direction of Akamai Technologies i.e., Akamai Technologies and United Insurance go up and down completely randomly.
Pair Corralation between Akamai Technologies and United Insurance
Assuming the 90 days trading horizon Akamai Technologies is expected to generate 1.35 times more return on investment than United Insurance. However, Akamai Technologies is 1.35 times more volatile than United Insurance Holdings. It trades about 0.09 of its potential returns per unit of risk. United Insurance Holdings is currently generating about 0.09 per unit of risk. If you would invest 6,733 in Akamai Technologies on September 1, 2025 and sell it today you would earn a total of 990.00 from holding Akamai Technologies or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akamai Technologies vs. United Insurance Holdings
Performance |
| Timeline |
| Akamai Technologies |
| United Insurance Holdings |
Akamai Technologies and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akamai Technologies and United Insurance
The main advantage of trading using opposite Akamai Technologies and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akamai Technologies position performs unexpectedly, United Insurance 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 Insurance will offset losses from the drop in United Insurance's long position.| Akamai Technologies vs. ADDUS HOMECARE | Akamai Technologies vs. Broadcom | Akamai Technologies vs. Kaufman Broad SA | Akamai Technologies vs. NTG Nordic Transport |
| United Insurance vs. TITAN MACHINERY | United Insurance vs. Suntory Beverage Food | United Insurance vs. DaChan Food Limited | United Insurance vs. Penta Ocean Construction Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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