Correlation Between GRENKELEASING Dusseldorf and United Insurance
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and United Insurance Holdings, you can compare the effects of market volatilities on GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING Dusseldorf and United Insurance.
Diversification Opportunities for GRENKELEASING Dusseldorf and United Insurance
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRENKELEASING and United is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf i.e., GRENKELEASING Dusseldorf and United Insurance go up and down completely randomly.
Pair Corralation between GRENKELEASING Dusseldorf and United Insurance
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to under-perform the United Insurance. In addition to that, GRENKELEASING Dusseldorf is 1.0 times more volatile than United Insurance Holdings. It trades about -0.04 of its total potential returns per unit of risk. United Insurance Holdings is currently generating about 0.06 per unit of volatility. If you would invest 965.00 in United Insurance Holdings on September 3, 2025 and sell it today you would earn a total of 65.00 from holding United Insurance Holdings or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. United Insurance Holdings
Performance |
| Timeline |
| GRENKELEASING Dusseldorf |
| United Insurance Holdings |
GRENKELEASING Dusseldorf and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING Dusseldorf and United Insurance
The main advantage of trading using opposite GRENKELEASING Dusseldorf and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING Dusseldorf 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.| GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc |
| United Insurance vs. Harmony Gold Mining | United Insurance vs. MOUNT GIBSON IRON | United Insurance vs. GRIFFIN MINING LTD | United Insurance vs. DONGJIANG ENVIRONMENTAL H |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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