Correlation Between UNIQA Insurance and Public Service
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Public Service 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 Public Service 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 Public Service Enterprise, you can compare the effects of market volatilities on UNIQA Insurance and Public Service 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 Public Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Public Service.
Diversification Opportunities for UNIQA Insurance and Public Service
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Public is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Public Service Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Service Enterprise 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 Public Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Service Enterprise has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Public Service go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Public Service
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 1.2 times less return on investment than Public Service. But when comparing it to its historical volatility, UNIQA Insurance Group is 1.64 times less risky than Public Service. It trades about 0.06 of its potential returns per unit of risk. Public Service Enterprise is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,865 in Public Service Enterprise on November 7, 2024 and sell it today you would earn a total of 465.00 from holding Public Service Enterprise or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.97% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Public Service Enterprise
Performance |
| Timeline |
| UNIQA Insurance Group |
| Public Service Enterprise |
UNIQA Insurance and Public Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Public Service
The main advantage of trading using opposite UNIQA Insurance and Public Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Public Service 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 Public Service will offset losses from the drop in Public Service's long position.| UNIQA Insurance vs. Sovereign Metals | UNIQA Insurance vs. bet at home AG | UNIQA Insurance vs. Creo Medical Group | UNIQA Insurance vs. URU Metals |
| Public Service vs. Moneta Money Bank | Public Service vs. Cembra Money Bank | Public Service vs. Zinc Media Group | Public Service vs. Sydbank |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |