Correlation Between Urstadt Biddle and Universal Insurance
Can any of the company-specific risk be diversified away by investing in both Urstadt Biddle and Universal 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 Urstadt Biddle and Universal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urstadt Biddle Properties and Universal Insurance Holdings, you can compare the effects of market volatilities on Urstadt Biddle and Universal 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 Urstadt Biddle with a short position of Universal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urstadt Biddle and Universal Insurance.
Diversification Opportunities for Urstadt Biddle and Universal Insurance
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Urstadt and Universal is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Urstadt Biddle Properties and Universal Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Insurance and Urstadt Biddle 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 Urstadt Biddle Properties are associated (or correlated) with Universal Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Insurance has no effect on the direction of Urstadt Biddle i.e., Urstadt Biddle and Universal Insurance go up and down completely randomly.
Pair Corralation between Urstadt Biddle and Universal Insurance
If you would invest 2,034 in Universal Insurance Holdings on December 29, 2023 and sell it today you would lose (2.00) from holding Universal Insurance Holdings or give up 0.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.35% |
Values | Daily Returns |
Urstadt Biddle Properties vs. Universal Insurance Holdings
Performance |
Timeline |
Urstadt Biddle Properties |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Universal Insurance |
Urstadt Biddle and Universal Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Urstadt Biddle and Universal Insurance
The main advantage of trading using opposite Urstadt Biddle and Universal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urstadt Biddle position performs unexpectedly, Universal 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 Universal Insurance will offset losses from the drop in Universal Insurance's long position.Urstadt Biddle vs. Tarsus PharmaceuticalsInc | Urstadt Biddle vs. Fidus Investment Corp | Urstadt Biddle vs. Presidio Property Trust | Urstadt Biddle vs. Calliditas Therapeutics |
Universal Insurance vs. Loews Corp | Universal Insurance vs. American Financial Group | Universal Insurance vs. Hartford Financial Services | Universal Insurance vs. Horace Mann Educators |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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