Correlation Between XTANT MEDICAL and United Insurance
Can any of the company-specific risk be diversified away by investing in both XTANT MEDICAL 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 XTANT MEDICAL and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTANT MEDICAL HLDGS and United Insurance Holdings, you can compare the effects of market volatilities on XTANT MEDICAL 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 XTANT MEDICAL with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTANT MEDICAL and United Insurance.
Diversification Opportunities for XTANT MEDICAL and United Insurance
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XTANT and United is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding XTANT MEDICAL HLDGS 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 XTANT MEDICAL 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 XTANT MEDICAL HLDGS 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 XTANT MEDICAL i.e., XTANT MEDICAL and United Insurance go up and down completely randomly.
Pair Corralation between XTANT MEDICAL and United Insurance
Assuming the 90 days horizon XTANT MEDICAL HLDGS is expected to generate 1.89 times more return on investment than United Insurance. However, XTANT MEDICAL is 1.89 times more volatile than United Insurance Holdings. It trades about 0.1 of its potential returns per unit of risk. United Insurance Holdings is currently generating about 0.09 per unit of risk. If you would invest 54.00 in XTANT MEDICAL HLDGS on August 15, 2025 and sell it today you would earn a total of 11.00 from holding XTANT MEDICAL HLDGS or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XTANT MEDICAL HLDGS vs. United Insurance Holdings
Performance |
| Timeline |
| XTANT MEDICAL HLDGS |
| United Insurance Holdings |
XTANT MEDICAL and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTANT MEDICAL and United Insurance
The main advantage of trading using opposite XTANT MEDICAL and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTANT MEDICAL 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.| XTANT MEDICAL vs. MAVEN WIRELESS SWEDEN | XTANT MEDICAL vs. Burlington Stores | XTANT MEDICAL vs. SUN ART RETAIL | XTANT MEDICAL vs. AEON STORES |
| United Insurance vs. Perseus Mining Limited | United Insurance vs. GRIFFIN MINING LTD | United Insurance vs. CORNISH METALS INC | United Insurance vs. Stag Industrial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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