Correlation Between UNIQA Insurance and General Motors
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and General Motors 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 General Motors 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 General Motors Co, you can compare the effects of market volatilities on UNIQA Insurance and General Motors 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 General Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and General Motors.
Diversification Opportunities for UNIQA Insurance and General Motors
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and General is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and General Motors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Motors 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 General Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Motors has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and General Motors go up and down completely randomly.
Pair Corralation between UNIQA Insurance and General Motors
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.36 times more return on investment than General Motors. However, UNIQA Insurance Group is 2.8 times less risky than General Motors. It trades about 0.27 of its potential returns per unit of risk. General Motors Co is currently generating about 0.08 per unit of risk. If you would invest 773.00 in UNIQA Insurance Group on October 24, 2024 and sell it today you would earn a total of 36.00 from holding UNIQA Insurance Group or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. General Motors Co
Performance |
| Timeline |
| UNIQA Insurance Group |
| General Motors |
UNIQA Insurance and General Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and General Motors
The main advantage of trading using opposite UNIQA Insurance and General Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, General Motors 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 General Motors will offset losses from the drop in General Motors' long position.| UNIQA Insurance vs. Bisichi Mining PLC | UNIQA Insurance vs. Lundin Mining Corp | UNIQA Insurance vs. Vitec Software Group | UNIQA Insurance vs. GoldMining |
| General Motors vs. UNIQA Insurance Group | General Motors vs. Alien Metals | General Motors vs. Gaztransport et Technigaz | General Motors vs. Sparebank 1 SR |
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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