Correlation Between UNIQA Insurance and DFS Furniture
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and DFS Furniture 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 DFS Furniture 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 DFS Furniture PLC, you can compare the effects of market volatilities on UNIQA Insurance and DFS Furniture 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 DFS Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and DFS Furniture.
Diversification Opportunities for UNIQA Insurance and DFS Furniture
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between UNIQA and DFS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and DFS Furniture PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFS Furniture 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 DFS Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFS Furniture PLC has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and DFS Furniture go up and down completely randomly.
Pair Corralation between UNIQA Insurance and DFS Furniture
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 3.76 times less return on investment than DFS Furniture. But when comparing it to its historical volatility, UNIQA Insurance Group is 2.95 times less risky than DFS Furniture. It trades about 0.05 of its potential returns per unit of risk. DFS Furniture PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,416 in DFS Furniture PLC on September 26, 2024 and sell it today you would earn a total of 3,984 from holding DFS Furniture PLC or generate 38.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
UNIQA Insurance Group vs. DFS Furniture PLC
Performance |
| Timeline |
| UNIQA Insurance Group |
| DFS Furniture PLC |
UNIQA Insurance and DFS Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and DFS Furniture
The main advantage of trading using opposite UNIQA Insurance and DFS Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, DFS Furniture 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 DFS Furniture will offset losses from the drop in DFS Furniture's 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 |
| DFS Furniture vs. UNIQA Insurance Group | DFS Furniture vs. Ameriprise Financial | DFS Furniture vs. Symphony Environmental Technologies | DFS Furniture vs. Cembra Money 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |