Correlation Between UNIQA Insurance and FuelCell Energy
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and FuelCell Energy 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 UNIQA Insurance and FuelCell Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIQA Insurance Group and FuelCell Energy, you can compare the effects of market volatilities on UNIQA Insurance and FuelCell Energy 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 UNIQA Insurance with a short position of FuelCell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and FuelCell Energy.
Diversification Opportunities for UNIQA Insurance and FuelCell Energy
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UNIQA and FuelCell is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and FuelCell Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FuelCell Energy and UNIQA 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 UNIQA Insurance Group are associated (or correlated) with FuelCell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FuelCell Energy has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and FuelCell Energy go up and down completely randomly.
Pair Corralation between UNIQA Insurance and FuelCell Energy
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.11 times more return on investment than FuelCell Energy. However, UNIQA Insurance Group is 9.1 times less risky than FuelCell Energy. It trades about 0.43 of its potential returns per unit of risk. FuelCell Energy is currently generating about -0.03 per unit of risk. If you would invest 743.00 in UNIQA Insurance Group on October 14, 2024 and sell it today you would earn a total of 58.00 from holding UNIQA Insurance Group or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. FuelCell Energy
Performance |
| Timeline |
| UNIQA Insurance Group |
| FuelCell Energy |
UNIQA Insurance and FuelCell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and FuelCell Energy
The main advantage of trading using opposite UNIQA Insurance and FuelCell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, FuelCell Energy 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 FuelCell Energy will offset losses from the drop in FuelCell Energy's long position.| UNIQA Insurance vs. Sunny Optical Technology | UNIQA Insurance vs. Pfeiffer Vacuum Technology | UNIQA Insurance vs. Roadside Real Estate | UNIQA Insurance vs. Aptitude Software Group |
| FuelCell Energy vs. UNIQA Insurance Group | FuelCell Energy vs. STMicroelectronics NV | FuelCell Energy vs. Vitec Software Group | FuelCell Energy vs. Alfa Financial Software |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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