Correlation Between UNIQA Insurance and Alternative Liquidity
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Alternative Liquidity 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 Alternative Liquidity 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 Alternative Liquidity, you can compare the effects of market volatilities on UNIQA Insurance and Alternative Liquidity 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 Alternative Liquidity. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Alternative Liquidity.
Diversification Opportunities for UNIQA Insurance and Alternative Liquidity
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Alternative is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Alternative Liquidity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Liquidity 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 Alternative Liquidity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Liquidity has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Alternative Liquidity go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Alternative Liquidity
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 12.69 times less return on investment than Alternative Liquidity. But when comparing it to its historical volatility, UNIQA Insurance Group is 6.93 times less risky than Alternative Liquidity. It trades about 0.02 of its potential returns per unit of risk. Alternative Liquidity is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Alternative Liquidity on September 15, 2024 and sell it today you would earn a total of 0.50 from holding Alternative Liquidity or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.79% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Alternative Liquidity
Performance |
| Timeline |
| UNIQA Insurance Group |
| Alternative Liquidity |
UNIQA Insurance and Alternative Liquidity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Alternative Liquidity
The main advantage of trading using opposite UNIQA Insurance and Alternative Liquidity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Alternative Liquidity 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 Alternative Liquidity will offset losses from the drop in Alternative Liquidity's long position.| UNIQA Insurance vs. Samsung Electronics Co | UNIQA Insurance vs. Samsung Electronics Co | UNIQA Insurance vs. Hyundai Motor | UNIQA Insurance vs. Reliance Industries Ltd |
| Alternative Liquidity vs. Livermore Investments Group | Alternative Liquidity vs. MT Bank Corp | Alternative Liquidity vs. UNIQA Insurance Group | Alternative Liquidity vs. Erste Group Bank |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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