Correlation Between UNIQA Insurance and Jost Werke
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Jost Werke 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 Jost Werke 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 Jost Werke AG, you can compare the effects of market volatilities on UNIQA Insurance and Jost Werke 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 Jost Werke. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Jost Werke.
Diversification Opportunities for UNIQA Insurance and Jost Werke
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Jost is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Jost Werke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jost Werke AG 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 Jost Werke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jost Werke AG has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Jost Werke go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Jost Werke
If you would invest 705.00 in UNIQA Insurance Group on January 15, 2025 and sell it today you would earn a total of 231.00 from holding UNIQA Insurance Group or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Jost Werke AG
Performance |
| Timeline |
| UNIQA Insurance Group |
| Jost Werke AG |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
UNIQA Insurance and Jost Werke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Jost Werke
The main advantage of trading using opposite UNIQA Insurance and Jost Werke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Jost Werke 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 Jost Werke will offset losses from the drop in Jost Werke's long position.| UNIQA Insurance vs. Samsung Electronics Co | UNIQA Insurance vs. Samsung Electronics Co | UNIQA Insurance vs. Samsung Electronics Co | UNIQA Insurance vs. Toyota Motor Corp |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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