Correlation Between UNIQA Insurance and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Zurich Insurance 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 Zurich Insurance 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 Zurich Insurance Group, you can compare the effects of market volatilities on UNIQA Insurance and Zurich Insurance 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 Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Zurich Insurance.
Diversification Opportunities for UNIQA Insurance and Zurich Insurance
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Zurich is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance 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 Zurich Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Insurance has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Zurich Insurance go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Zurich Insurance
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 8.62 times less return on investment than Zurich Insurance. But when comparing it to its historical volatility, UNIQA Insurance Group is 1.24 times less risky than Zurich Insurance. It trades about 0.02 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 41,795 in Zurich Insurance Group on August 29, 2024 and sell it today you would earn a total of 13,355 from holding Zurich Insurance Group or generate 31.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.09% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Zurich Insurance Group
Performance |
| Timeline |
| UNIQA Insurance Group |
| Zurich Insurance |
UNIQA Insurance and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Zurich Insurance
The main advantage of trading using opposite UNIQA Insurance and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Zurich Insurance 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 Zurich Insurance will offset losses from the drop in Zurich Insurance's long position.| UNIQA Insurance vs. Lendinvest PLC | UNIQA Insurance vs. Neometals | UNIQA Insurance vs. Albion Technology General | UNIQA Insurance vs. Jupiter Fund Management |
| Zurich Insurance vs. Neometals | Zurich Insurance vs. Coor Service Management | Zurich Insurance vs. Fidelity Sustainable USD | Zurich Insurance vs. Sancus Lending 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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