Correlation Between UNIQA Insurance and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and GreenX 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 GreenX 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 GreenX Metals, you can compare the effects of market volatilities on UNIQA Insurance and GreenX 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and GreenX Metals.
Diversification Opportunities for UNIQA Insurance and GreenX Metals
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and GreenX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and GreenX Metals go up and down completely randomly.
Pair Corralation between UNIQA Insurance and GreenX Metals
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 2.12 times less return on investment than GreenX Metals. But when comparing it to its historical volatility, UNIQA Insurance Group is 4.16 times less risky than GreenX Metals. It trades about 0.05 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,100 in GreenX Metals on August 30, 2024 and sell it today you would earn a total of 450.00 from holding GreenX Metals or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
UNIQA Insurance Group vs. GreenX Metals
Performance |
| Timeline |
| UNIQA Insurance Group |
| GreenX Metals |
UNIQA Insurance and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and GreenX Metals
The main advantage of trading using opposite UNIQA Insurance and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, GreenX 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| UNIQA Insurance vs. Tungsten West PLC | UNIQA Insurance vs. Argo Group Limited | UNIQA Insurance vs. Hardide PLC | UNIQA Insurance vs. Versarien PLC |
| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Centamin PLC | GreenX Metals vs. Atalaya Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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