Correlation Between UNIQA Insurance and Argen X
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Argen X 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 Argen X 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 Argen X, you can compare the effects of market volatilities on UNIQA Insurance and Argen X 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 Argen X. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Argen X.
Diversification Opportunities for UNIQA Insurance and Argen X
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIQA and Argen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Argen X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argen X 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 Argen X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argen X has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Argen X go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Argen X
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the Argen X. But the stock apears to be less risky and, when comparing its historical volatility, UNIQA Insurance Group is 2.04 times less risky than Argen X. The stock trades about -0.03 of its potential returns per unit of risk. The Argen X is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 42,050 in Argen X on September 23, 2024 and sell it today you would earn a total of 17,820 from holding Argen X or generate 42.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Argen X
Performance |
| Timeline |
| UNIQA Insurance Group |
| Argen X |
UNIQA Insurance and Argen X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Argen X
The main advantage of trading using opposite UNIQA Insurance and Argen X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Argen X 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 Argen X will offset losses from the drop in Argen X'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 |
| Argen X vs. Auction Technology Group | Argen X vs. Premier Foods PLC | Argen X vs. Sabre Insurance Group | Argen X vs. UNIQA Insurance 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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