Correlation Between UNIQA Insurance and Henderson High
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Henderson High 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 Henderson High 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 Henderson High Income, you can compare the effects of market volatilities on UNIQA Insurance and Henderson High 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 Henderson High. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Henderson High.
Diversification Opportunities for UNIQA Insurance and Henderson High
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and Henderson is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Henderson High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson High Income 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 Henderson High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson High Income has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Henderson High go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Henderson High
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 1.0 times more return on investment than Henderson High. However, UNIQA Insurance is 1.0 times more volatile than Henderson High Income. It trades about 0.1 of its potential returns per unit of risk. Henderson High Income is currently generating about 0.07 per unit of risk. If you would invest 721.00 in UNIQA Insurance Group on December 11, 2024 and sell it today you would earn a total of 172.00 from holding UNIQA Insurance Group or generate 23.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.52% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Henderson High Income
Performance |
| Timeline |
| UNIQA Insurance Group |
| Henderson High Income |
UNIQA Insurance and Henderson High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Henderson High
The main advantage of trading using opposite UNIQA Insurance and Henderson High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Henderson High 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 Henderson High will offset losses from the drop in Henderson High's long position.| UNIQA Insurance vs. Take Two Interactive Software | ||
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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