Correlation Between Panache Beverage and Unum
Can any of the company-specific risk be diversified away by investing in both Panache Beverage and Unum 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 Panache Beverage and Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panache Beverage and Unum Group, you can compare the effects of market volatilities on Panache Beverage and Unum 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 Panache Beverage with a short position of Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panache Beverage and Unum.
Diversification Opportunities for Panache Beverage and Unum
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panache and Unum is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Panache Beverage and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group and Panache Beverage 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 Panache Beverage are associated (or correlated) with Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of Panache Beverage i.e., Panache Beverage and Unum go up and down completely randomly.
Pair Corralation between Panache Beverage and Unum
Given the investment horizon of 90 days Panache Beverage is expected to generate 100.72 times more return on investment than Unum. However, Panache Beverage is 100.72 times more volatile than Unum Group. It trades about 0.11 of its potential returns per unit of risk. Unum Group is currently generating about 0.04 per unit of risk. If you would invest 1.00 in Panache Beverage on April 25, 2025 and sell it today you would lose (1.00) from holding Panache Beverage or give up 99.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Panache Beverage vs. Unum Group
Performance |
| Timeline |
| Panache Beverage |
| Unum Group |
Panache Beverage and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panache Beverage and Unum
The main advantage of trading using opposite Panache Beverage and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panache Beverage position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum's long position.| Panache Beverage vs. Universal Insurance Holdings | Panache Beverage vs. WT Offshore | Panache Beverage vs. Kuya Silver | Panache Beverage vs. Life Insurance |
| Unum vs. Prudential Financial | Unum vs. MetLife | Unum vs. Jackson Financial | Unum vs. Manulife Financial Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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