Correlation Between UNIQA Insurance and International Biotechnology
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and International Biotechnology 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 International Biotechnology 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 International Biotechnology Trust, you can compare the effects of market volatilities on UNIQA Insurance and International Biotechnology 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 International Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and International Biotechnology.
Diversification Opportunities for UNIQA Insurance and International Biotechnology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UNIQA and International is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and International Biotechnology Tr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Biotechnology 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 International Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Biotechnology has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and International Biotechnology go up and down completely randomly.
Pair Corralation between UNIQA Insurance and International Biotechnology
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.65 times more return on investment than International Biotechnology. However, UNIQA Insurance Group is 1.55 times less risky than International Biotechnology. It trades about 0.05 of its potential returns per unit of risk. International Biotechnology Trust is currently generating about 0.02 per unit of risk. If you would invest 682.00 in UNIQA Insurance Group on November 2, 2024 and sell it today you would earn a total of 132.00 from holding UNIQA Insurance Group or generate 19.35% 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. International Biotechnology Tr
Performance |
| Timeline |
| UNIQA Insurance Group |
| International Biotechnology |
UNIQA Insurance and International Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and International Biotechnology
The main advantage of trading using opposite UNIQA Insurance and International Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, International Biotechnology 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 International Biotechnology will offset losses from the drop in International Biotechnology's long position.| UNIQA Insurance vs. First Class Metals | UNIQA Insurance vs. Monster Beverage Corp | UNIQA Insurance vs. Empire Metals Limited | UNIQA Insurance vs. Associated British Foods |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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