Correlation Between UNIQA Insurance and Alliance Data
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Alliance Data 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 Alliance Data 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 Alliance Data Systems, you can compare the effects of market volatilities on UNIQA Insurance and Alliance Data 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 Alliance Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Alliance Data.
Diversification Opportunities for UNIQA Insurance and Alliance Data
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and Alliance is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Alliance Data Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Data Systems 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 Alliance Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Data Systems has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Alliance Data go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Alliance Data
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 3.09 times less return on investment than Alliance Data. But when comparing it to its historical volatility, UNIQA Insurance Group is 3.35 times less risky than Alliance Data. It trades about 0.09 of its potential returns per unit of risk. Alliance Data Systems is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,218 in Alliance Data Systems on October 18, 2024 and sell it today you would earn a total of 936.00 from holding Alliance Data Systems or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.18% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Alliance Data Systems
Performance |
| Timeline |
| UNIQA Insurance Group |
| Alliance Data Systems |
UNIQA Insurance and Alliance Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Alliance Data
The main advantage of trading using opposite UNIQA Insurance and Alliance Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Alliance Data 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 Alliance Data will offset losses from the drop in Alliance Data's long position.| UNIQA Insurance vs. Home Depot | UNIQA Insurance vs. Pets at Home | UNIQA Insurance vs. Datagroup SE | UNIQA Insurance vs. Supermarket Income REIT |
| Alliance Data vs. Hochschild Mining plc | Alliance Data vs. UNIQA Insurance Group | Alliance Data vs. Air Products Chemicals | Alliance Data vs. Guild Esports Plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |