Correlation Between CORNERSTONE INSURANCE and UNIVERSAL INSURANCE
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By analyzing existing cross correlation between CORNERSTONE INSURANCE PLC and UNIVERSAL INSURANCE PANY, you can compare the effects of market volatilities on CORNERSTONE INSURANCE and UNIVERSAL 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 CORNERSTONE INSURANCE with a short position of UNIVERSAL INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CORNERSTONE INSURANCE and UNIVERSAL INSURANCE.
Diversification Opportunities for CORNERSTONE INSURANCE and UNIVERSAL INSURANCE
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CORNERSTONE and UNIVERSAL is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CORNERSTONE INSURANCE PLC and UNIVERSAL INSURANCE PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIVERSAL INSURANCE PANY and CORNERSTONE 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 CORNERSTONE INSURANCE PLC are associated (or correlated) with UNIVERSAL INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIVERSAL INSURANCE PANY has no effect on the direction of CORNERSTONE INSURANCE i.e., CORNERSTONE INSURANCE and UNIVERSAL INSURANCE go up and down completely randomly.
Pair Corralation between CORNERSTONE INSURANCE and UNIVERSAL INSURANCE
Assuming the 90 days trading horizon CORNERSTONE INSURANCE is expected to generate 1.05 times less return on investment than UNIVERSAL INSURANCE. In addition to that, CORNERSTONE INSURANCE is 1.12 times more volatile than UNIVERSAL INSURANCE PANY. It trades about 0.21 of its total potential returns per unit of risk. UNIVERSAL INSURANCE PANY is currently generating about 0.25 per unit of volatility. If you would invest 49.00 in UNIVERSAL INSURANCE PANY on April 17, 2025 and sell it today you would earn a total of 30.00 from holding UNIVERSAL INSURANCE PANY or generate 61.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CORNERSTONE INSURANCE PLC vs. UNIVERSAL INSURANCE PANY
Performance |
| Timeline |
| CORNERSTONE INSURANCE PLC |
| UNIVERSAL INSURANCE PANY |
CORNERSTONE INSURANCE and UNIVERSAL INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CORNERSTONE INSURANCE and UNIVERSAL INSURANCE
The main advantage of trading using opposite CORNERSTONE INSURANCE and UNIVERSAL INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CORNERSTONE INSURANCE position performs unexpectedly, UNIVERSAL 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 UNIVERSAL INSURANCE will offset losses from the drop in UNIVERSAL INSURANCE's long position.| CORNERSTONE INSURANCE vs. WEMA BANK PLC | CORNERSTONE INSURANCE vs. ZENITH BANK PLC | CORNERSTONE INSURANCE vs. JAIZ BANK PLC | CORNERSTONE INSURANCE vs. UNION HOMES REAL |
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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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