Correlation Between UNIVERSAL INSURANCE and JAPAUL OIL
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By analyzing existing cross correlation between UNIVERSAL INSURANCE PANY and JAPAUL OIL MARITIME, you can compare the effects of market volatilities on UNIVERSAL INSURANCE and JAPAUL OIL 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 JAPAUL OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIVERSAL INSURANCE and JAPAUL OIL.
Diversification Opportunities for UNIVERSAL INSURANCE and JAPAUL OIL
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIVERSAL and JAPAUL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding UNIVERSAL INSURANCE PANY and JAPAUL OIL MARITIME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAUL OIL MARITIME 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 JAPAUL OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAUL OIL MARITIME has no effect on the direction of UNIVERSAL INSURANCE i.e., UNIVERSAL INSURANCE and JAPAUL OIL go up and down completely randomly.
Pair Corralation between UNIVERSAL INSURANCE and JAPAUL OIL
Assuming the 90 days trading horizon UNIVERSAL INSURANCE PANY is expected to generate 1.27 times more return on investment than JAPAUL OIL. However, UNIVERSAL INSURANCE is 1.27 times more volatile than JAPAUL OIL MARITIME. It trades about 0.27 of its potential returns per unit of risk. JAPAUL OIL MARITIME is currently generating about 0.12 per unit of risk. If you would invest 52.00 in UNIVERSAL INSURANCE PANY on June 10, 2025 and sell it today you would earn a total of 77.00 from holding UNIVERSAL INSURANCE PANY or generate 148.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIVERSAL INSURANCE PANY vs. JAPAUL OIL MARITIME
Performance |
| Timeline |
| UNIVERSAL INSURANCE PANY |
| JAPAUL OIL MARITIME |
Risk-Adjusted Performance
Fair
Weak | Strong |
UNIVERSAL INSURANCE and JAPAUL OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIVERSAL INSURANCE and JAPAUL OIL
The main advantage of trading using opposite UNIVERSAL INSURANCE and JAPAUL OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIVERSAL INSURANCE position performs unexpectedly, JAPAUL OIL 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 JAPAUL OIL will offset losses from the drop in JAPAUL OIL's long position.| UNIVERSAL INSURANCE vs. BUA FOODS PLC | UNIVERSAL INSURANCE vs. ASO SAVINGS AND | UNIVERSAL INSURANCE vs. STACO INSURANCE PLC | UNIVERSAL INSURANCE vs. MULTIVERSE MINING AND |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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