Correlation Between UNIQA Insurance and Beazer Homes
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Beazer Homes 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 Beazer Homes 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 Beazer Homes USA, you can compare the effects of market volatilities on UNIQA Insurance and Beazer Homes 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 Beazer Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Beazer Homes.
Diversification Opportunities for UNIQA Insurance and Beazer Homes
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Beazer is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Beazer Homes USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beazer Homes USA 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 Beazer Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beazer Homes USA has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Beazer Homes go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Beazer Homes
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 5.78 times less return on investment than Beazer Homes. But when comparing it to its historical volatility, UNIQA Insurance Group is 5.18 times less risky than Beazer Homes. It trades about 0.06 of its potential returns per unit of risk. Beazer Homes USA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,576 in Beazer Homes USA on October 26, 2024 and sell it today you would earn a total of 1,239 from holding Beazer Homes USA or generate 78.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 60.08% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Beazer Homes USA
Performance |
| Timeline |
| UNIQA Insurance Group |
| Beazer Homes USA |
UNIQA Insurance and Beazer Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Beazer Homes
The main advantage of trading using opposite UNIQA Insurance and Beazer Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Beazer Homes 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 Beazer Homes will offset losses from the drop in Beazer Homes' long position.| UNIQA Insurance vs. Gaztransport et Technigaz | UNIQA Insurance vs. Kaufman Et Broad | UNIQA Insurance vs. EVS Broadcast Equipment | UNIQA Insurance vs. JB Hunt Transport |
| Beazer Homes vs. Zegona Communications Plc | Beazer Homes vs. Fonix Mobile plc | Beazer Homes vs. Geely Automobile Holdings | Beazer Homes vs. Evolution Gaming Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |