Correlation Between UNIQA Insurance and Impax Asset
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Impax Asset 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 Impax Asset 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 Impax Asset Management, you can compare the effects of market volatilities on UNIQA Insurance and Impax Asset 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 Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Impax Asset.
Diversification Opportunities for UNIQA Insurance and Impax Asset
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Impax is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Impax Asset go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Impax Asset
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.37 times more return on investment than Impax Asset. However, UNIQA Insurance Group is 2.69 times less risky than Impax Asset. It trades about 0.29 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.37 per unit of risk. If you would invest 773.00 in UNIQA Insurance Group on October 25, 2024 and sell it today you would earn a total of 38.00 from holding UNIQA Insurance Group or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Impax Asset Management
Performance |
| Timeline |
| UNIQA Insurance Group |
| Impax Asset Management |
UNIQA Insurance and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Impax Asset
The main advantage of trading using opposite UNIQA Insurance and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Impax Asset 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 Impax Asset will offset losses from the drop in Impax Asset's long position.| UNIQA Insurance vs. Toyota Motor Corp | UNIQA Insurance vs. SoftBank Group Corp | UNIQA Insurance vs. OTP Bank Nyrt | UNIQA Insurance vs. ONEOK Inc |
| Impax Asset vs. Games Workshop Group | Impax Asset vs. Auto Trader Group | Impax Asset vs. Coor Service Management | Impax Asset vs. iShares Dow Jones |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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