Correlation Between UNIQA Insurance and Roper Technologies
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Roper Technologies 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 Roper Technologies 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 Roper Technologies, you can compare the effects of market volatilities on UNIQA Insurance and Roper Technologies 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 Roper Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Roper Technologies.
Diversification Opportunities for UNIQA Insurance and Roper Technologies
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIQA and Roper is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Roper Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roper Technologies 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 Roper Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roper Technologies has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Roper Technologies go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Roper Technologies
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 6.7 times less return on investment than Roper Technologies. But when comparing it to its historical volatility, UNIQA Insurance Group is 7.35 times less risky than Roper Technologies. It trades about 0.03 of its potential returns per unit of risk. Roper Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 44,532 in Roper Technologies on September 3, 2024 and sell it today you would earn a total of 11,738 from holding Roper Technologies or generate 26.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Roper Technologies
Performance |
| Timeline |
| UNIQA Insurance Group |
| Roper Technologies |
UNIQA Insurance and Roper Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Roper Technologies
The main advantage of trading using opposite UNIQA Insurance and Roper Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Roper Technologies 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 Roper Technologies will offset losses from the drop in Roper Technologies' long position.| UNIQA Insurance vs. Panther Metals PLC | UNIQA Insurance vs. McEwen Mining | UNIQA Insurance vs. Molson Coors Beverage | UNIQA Insurance vs. Central Asia Metals |
| Roper Technologies vs. Hochschild Mining plc | Roper Technologies vs. Lundin Mining Corp | Roper Technologies vs. Ebro Foods | Roper Technologies vs. Silvercorp 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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