Correlation Between UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL
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By analyzing existing cross correlation between UNIVERSAL INSURANCE PANY and INDUSTRIAL MEDICAL GASES, you can compare the effects of market volatilities on UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL 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 UNIVERSAL INSURANCE with a short position of INDUSTRIAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL.
Diversification Opportunities for UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIVERSAL and INDUSTRIAL is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding UNIVERSAL INSURANCE PANY and INDUSTRIAL MEDICAL GASES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDUSTRIAL MEDICAL GASES and UNIVERSAL 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 UNIVERSAL INSURANCE PANY are associated (or correlated) with INDUSTRIAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDUSTRIAL MEDICAL GASES has no effect on the direction of UNIVERSAL INSURANCE i.e., UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL go up and down completely randomly.
Pair Corralation between UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL
Assuming the 90 days trading horizon UNIVERSAL INSURANCE PANY is expected to generate 0.96 times more return on investment than INDUSTRIAL MEDICAL. However, UNIVERSAL INSURANCE PANY is 1.04 times less risky than INDUSTRIAL MEDICAL. It trades about 0.18 of its potential returns per unit of risk. INDUSTRIAL MEDICAL GASES is currently generating about 0.08 per unit of risk. If you would invest 51.00 in UNIVERSAL INSURANCE PANY on April 19, 2025 and sell it today you would earn a total of 21.00 from holding UNIVERSAL INSURANCE PANY or generate 41.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIVERSAL INSURANCE PANY vs. INDUSTRIAL MEDICAL GASES
Performance |
| Timeline |
| UNIVERSAL INSURANCE PANY |
| INDUSTRIAL MEDICAL GASES |
UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL
The main advantage of trading using opposite UNIVERSAL INSURANCE and INDUSTRIAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIVERSAL INSURANCE position performs unexpectedly, INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL will offset losses from the drop in INDUSTRIAL MEDICAL's long position.| UNIVERSAL INSURANCE vs. WEMA BANK PLC | UNIVERSAL INSURANCE vs. TOTALENERGIES MARKETING NIGERIA | UNIVERSAL INSURANCE vs. FIDELITY BANK PLC | UNIVERSAL INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY |
| INDUSTRIAL MEDICAL vs. GUINEA INSURANCE PLC | INDUSTRIAL MEDICAL vs. ALUMINIUM EXTRUSION IND | INDUSTRIAL MEDICAL vs. VITAFOAM NIGERIA PLC | INDUSTRIAL MEDICAL vs. JAPAUL OIL MARITIME |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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