Correlation Between UNIQA Insurance and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Eastinco Mining 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 Eastinco Mining 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 Eastinco Mining Exploration, you can compare the effects of market volatilities on UNIQA Insurance and Eastinco Mining 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Eastinco Mining.
Diversification Opportunities for UNIQA Insurance and Eastinco Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and Eastinco is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Eastinco Mining go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Eastinco Mining
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.67 times more return on investment than Eastinco Mining. However, UNIQA Insurance Group is 1.49 times less risky than Eastinco Mining. It trades about 0.09 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.04 per unit of risk. If you would invest 730.00 in UNIQA Insurance Group on September 18, 2024 and sell it today you would earn a total of 13.00 from holding UNIQA Insurance Group or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Eastinco Mining Exploration
Performance |
| Timeline |
| UNIQA Insurance Group |
| Eastinco Mining Expl |
UNIQA Insurance and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Eastinco Mining
The main advantage of trading using opposite UNIQA Insurance and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| UNIQA Insurance vs. Veolia Environnement VE | UNIQA Insurance vs. Silvercorp Metals | UNIQA Insurance vs. GoldMining | UNIQA Insurance vs. Neometals |
| Eastinco Mining vs. Austevoll Seafood ASA | Eastinco Mining vs. UNIQA Insurance Group | Eastinco Mining vs. CleanTech Lithium plc | Eastinco Mining vs. Leroy Seafood 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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