Correlation Between PICC Property and Universal Insurance

Can any of the company-specific risk be diversified away by investing in both PICC Property 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 PICC Property and Universal Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PICC Property and and Universal Insurance Holdings, you can compare the effects of market volatilities on PICC Property 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 PICC Property with a short position of Universal Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and Universal Insurance.

Diversification Opportunities for PICC Property and Universal Insurance

-0.67

Correlation Coefficient

PICC Property  Universal Insurance

Excellent diversification

The 3 months correlation between PICC and Universal is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and Universal Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Insurance and PICC Property 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 PICC Property and 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 PICC Property i.e., PICC Property and Universal Insurance go up and down completely randomly.

Pair Corralation between PICC Property and Universal Insurance

Assuming the 90 days horizon PICC Property and is expected to generate 1.11 times more return on investment than Universal Insurance. However, PICC Property is 1.11 times more volatile than Universal Insurance Holdings. It trades about 0.09 of its potential returns per unit of risk. Universal Insurance Holdings is currently generating about -0.1 per unit of risk. If you would invest  160.00  in PICC Property and on May 12, 2025 and sell it today you would earn a total of  19.00  from holding PICC Property and or generate 11.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PICC Property and  vs.  Universal Insurance Holdings

PICC Property

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PICC Property and are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PICC Property may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Universal Insurance

Risk-Adjusted Performance

Weakest

Over the last 90 days Universal Insurance Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with PICC Property and Universal Insurance

The main advantage of trading using opposite PICC Property and Universal Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property 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.

The idea behind PICC Property and and Universal Insurance Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.