Correlation Between UNIQA Insurance and Futura Medical
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Futura Medical 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 Futura Medical 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 Futura Medical, you can compare the effects of market volatilities on UNIQA Insurance and Futura Medical 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 Futura Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Futura Medical.
Diversification Opportunities for UNIQA Insurance and Futura Medical
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UNIQA and Futura is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Futura Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futura Medical 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 Futura Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futura Medical has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Futura Medical go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Futura Medical
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.2 times more return on investment than Futura Medical. However, UNIQA Insurance Group is 5.06 times less risky than Futura Medical. It trades about 0.05 of its potential returns per unit of risk. Futura Medical is currently generating about 0.0 per unit of risk. If you would invest 605.00 in UNIQA Insurance Group on September 3, 2024 and sell it today you would earn a total of 115.00 from holding UNIQA Insurance Group or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.59% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Futura Medical
Performance |
| Timeline |
| UNIQA Insurance Group |
| Futura Medical |
UNIQA Insurance and Futura Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Futura Medical
The main advantage of trading using opposite UNIQA Insurance and Futura Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Futura Medical 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 Futura Medical will offset losses from the drop in Futura Medical's long position.| UNIQA Insurance vs. Panther Metals PLC | UNIQA Insurance vs. McEwen Mining | UNIQA Insurance vs. Molson Coors Beverage | UNIQA Insurance vs. Central Asia Metals |
| Futura Medical vs. Lendinvest PLC | Futura Medical vs. Regions Financial Corp | Futura Medical vs. Dentsply Sirona | Futura Medical vs. Discover Financial Services |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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