Correlation Between UNIQA Insurance and Bytes Technology
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Bytes Technology 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 Bytes Technology 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 Bytes Technology, you can compare the effects of market volatilities on UNIQA Insurance and Bytes Technology 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 Bytes Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Bytes Technology.
Diversification Opportunities for UNIQA Insurance and Bytes Technology
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIQA and Bytes is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Bytes Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bytes Technology 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 Bytes Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bytes Technology has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Bytes Technology go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Bytes Technology
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.84 times more return on investment than Bytes Technology. However, UNIQA Insurance Group is 1.19 times less risky than Bytes Technology. It trades about 0.46 of its potential returns per unit of risk. Bytes Technology is currently generating about -0.33 per unit of risk. If you would invest 719.00 in UNIQA Insurance Group on September 28, 2024 and sell it today you would earn a total of 54.00 from holding UNIQA Insurance Group or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Bytes Technology
Performance |
| Timeline |
| UNIQA Insurance Group |
| Bytes Technology |
UNIQA Insurance and Bytes Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Bytes Technology
The main advantage of trading using opposite UNIQA Insurance and Bytes Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Bytes Technology 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 Bytes Technology will offset losses from the drop in Bytes Technology's long position.| UNIQA Insurance vs. Nordic Semiconductor ASA | UNIQA Insurance vs. Taiwan Semiconductor Manufacturing | UNIQA Insurance vs. Auto Trader Group | UNIQA Insurance vs. Albion Technology General |
| Bytes Technology vs. Primary Health Properties | Bytes Technology vs. PureTech Health plc | Bytes Technology vs. CVS Health Corp | Bytes Technology vs. HCA Healthcare |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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