Correlation Between UNIQA Insurance and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Accsys Technologies 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 Accsys Technologies 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 Accsys Technologies PLC, you can compare the effects of market volatilities on UNIQA Insurance and Accsys Technologies 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 Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Accsys Technologies.
Diversification Opportunities for UNIQA Insurance and Accsys Technologies
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and Accsys is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Accsys Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies PLC 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 Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies PLC has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Accsys Technologies go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Accsys Technologies
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the Accsys Technologies. But the stock apears to be less risky and, when comparing its historical volatility, UNIQA Insurance Group is 3.17 times less risky than Accsys Technologies. The stock trades about -0.13 of its potential returns per unit of risk. The Accsys Technologies PLC is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 5,090 in Accsys Technologies PLC on September 2, 2024 and sell it today you would lose (325.00) from holding Accsys Technologies PLC or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Accsys Technologies PLC
Performance |
| Timeline |
| UNIQA Insurance Group |
| Accsys Technologies PLC |
UNIQA Insurance and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Accsys Technologies
The main advantage of trading using opposite UNIQA Insurance and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Accsys Technologies 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 Accsys Technologies will offset losses from the drop in Accsys Technologies' 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 |
| Accsys Technologies vs. Bankers Investment Trust | Accsys Technologies vs. Federal Realty Investment | Accsys Technologies vs. Beeks Trading | Accsys Technologies vs. Lowland Investment Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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