Correlation Between UNIQA Insurance and Verizon Communications
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Verizon Communications 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 Verizon Communications 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 Verizon Communications, you can compare the effects of market volatilities on UNIQA Insurance and Verizon Communications 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 Verizon Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Verizon Communications.
Diversification Opportunities for UNIQA Insurance and Verizon Communications
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Verizon is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Verizon Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verizon Communications 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 Verizon Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verizon Communications has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Verizon Communications go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Verizon Communications
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.67 times more return on investment than Verizon Communications. However, UNIQA Insurance Group is 1.5 times less risky than Verizon Communications. It trades about 0.15 of its potential returns per unit of risk. Verizon Communications is currently generating about -0.03 per unit of risk. If you would invest 787.00 in UNIQA Insurance Group on November 7, 2024 and sell it today you would earn a total of 25.00 from holding UNIQA Insurance Group or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Verizon Communications
Performance |
| Timeline |
| UNIQA Insurance Group |
| Verizon Communications |
UNIQA Insurance and Verizon Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Verizon Communications
The main advantage of trading using opposite UNIQA Insurance and Verizon Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Verizon Communications 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 Verizon Communications will offset losses from the drop in Verizon Communications' long position.| UNIQA Insurance vs. Zegona Communications Plc | UNIQA Insurance vs. Bell Food Group | UNIQA Insurance vs. Orient Telecoms | UNIQA Insurance vs. Edita Food Industries |
| Verizon Communications vs. Alfa Financial Software | Verizon Communications vs. Indutrade AB | Verizon Communications vs. Lowland Investment Co | Verizon Communications vs. Herald Investment Trust |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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