Correlation Between UNIQA Insurance and Eneraqua Technologies
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Eneraqua 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 Eneraqua 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 Eneraqua Technologies PLC, you can compare the effects of market volatilities on UNIQA Insurance and Eneraqua 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 Eneraqua Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Eneraqua Technologies.
Diversification Opportunities for UNIQA Insurance and Eneraqua Technologies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Eneraqua is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Eneraqua Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eneraqua 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 Eneraqua Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eneraqua Technologies PLC has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Eneraqua Technologies go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Eneraqua Technologies
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.44 times more return on investment than Eneraqua Technologies. However, UNIQA Insurance Group is 2.25 times less risky than Eneraqua Technologies. It trades about 0.15 of its potential returns per unit of risk. Eneraqua Technologies PLC is currently generating about -0.14 per unit of risk. If you would invest 787.00 in UNIQA Insurance Group on November 5, 2024 and sell it today you would earn a total of 25.00 from holding UNIQA Insurance Group or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Eneraqua Technologies PLC
Performance |
| Timeline |
| UNIQA Insurance Group |
| Eneraqua Technologies PLC |
UNIQA Insurance and Eneraqua Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Eneraqua Technologies
The main advantage of trading using opposite UNIQA Insurance and Eneraqua Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Eneraqua 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 Eneraqua Technologies will offset losses from the drop in Eneraqua Technologies' long position.| UNIQA Insurance vs. AcadeMedia AB | UNIQA Insurance vs. Griffin Mining | UNIQA Insurance vs. Flutter Entertainment PLC | UNIQA Insurance vs. One Media iP |
| Eneraqua Technologies vs. Gaztransport et Technigaz | Eneraqua Technologies vs. Micron Technology | Eneraqua Technologies vs. Ashtead Technology Holdings | Eneraqua Technologies vs. Sabien Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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