Correlation Between UNIQA Insurance and DXC Technology
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and DXC Technology 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 DXC Technology 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 DXC Technology Co, you can compare the effects of market volatilities on UNIQA Insurance and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and DXC Technology.
Diversification Opportunities for UNIQA Insurance and DXC Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and DXC is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and DXC Technology go up and down completely randomly.
Pair Corralation between UNIQA Insurance and DXC Technology
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.25 times more return on investment than DXC Technology. However, UNIQA Insurance Group is 4.06 times less risky than DXC Technology. It trades about 0.02 of its potential returns per unit of risk. DXC Technology Co is currently generating about 0.0 per unit of risk. If you would invest 693.00 in UNIQA Insurance Group on September 1, 2024 and sell it today you would earn a total of 26.00 from holding UNIQA Insurance Group or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.11% |
| Values | Daily Returns |
UNIQA Insurance Group vs. DXC Technology Co
Performance |
| Timeline |
| UNIQA Insurance Group |
| DXC Technology |
UNIQA Insurance and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and DXC Technology
The main advantage of trading using opposite UNIQA Insurance and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance vs. Triad Group PLC |
| DXC Technology vs. Orient Telecoms | DXC Technology vs. Future Metals NL | DXC Technology vs. AMG Advanced Metallurgical | DXC Technology vs. Sovereign Metals |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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