Correlation Between UNIQA Insurance and European Metals
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and European Metals 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 European Metals 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 European Metals Holdings, you can compare the effects of market volatilities on UNIQA Insurance and European Metals 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 European Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and European Metals.
Diversification Opportunities for UNIQA Insurance and European Metals
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and European is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and European Metals Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Metals Holdings 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 European Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Metals Holdings has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and European Metals go up and down completely randomly.
Pair Corralation between UNIQA Insurance and European Metals
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.18 times more return on investment than European Metals. However, UNIQA Insurance Group is 5.57 times less risky than European Metals. It trades about 0.02 of its potential returns per unit of risk. European Metals Holdings is currently generating about -0.11 per unit of risk. If you would invest 690.00 in UNIQA Insurance Group on September 12, 2024 and sell it today you would earn a total of 33.00 from holding UNIQA Insurance Group or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
UNIQA Insurance Group vs. European Metals Holdings
Performance |
| Timeline |
| UNIQA Insurance Group |
| European Metals Holdings |
UNIQA Insurance and European Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and European Metals
The main advantage of trading using opposite UNIQA Insurance and European Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, European Metals 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 European Metals will offset losses from the drop in European Metals' long position.| UNIQA Insurance vs. Prudential Financial | UNIQA Insurance vs. Norman Broadbent Plc | UNIQA Insurance vs. Ross Stores | UNIQA Insurance vs. Cembra Money Bank |
| European Metals vs. National Bank of | European Metals vs. Alior Bank SA | European Metals vs. Solstad Offshore ASA | European Metals vs. St Galler Kantonalbank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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