Correlation Between UNIQA Insurance and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and JLEN Environmental 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 JLEN Environmental 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 JLEN Environmental Assets, you can compare the effects of market volatilities on UNIQA Insurance and JLEN Environmental 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 JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and JLEN Environmental.
Diversification Opportunities for UNIQA Insurance and JLEN Environmental
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and JLEN is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and JLEN Environmental go up and down completely randomly.
Pair Corralation between UNIQA Insurance and JLEN Environmental
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.75 times more return on investment than JLEN Environmental. However, UNIQA Insurance Group is 1.34 times less risky than JLEN Environmental. It trades about 0.17 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.11 per unit of risk. If you would invest 720.00 in UNIQA Insurance Group on September 13, 2024 and sell it today you would earn a total of 28.00 from holding UNIQA Insurance Group or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 73.91% |
| Values | Daily Returns |
UNIQA Insurance Group vs. JLEN Environmental Assets
Performance |
| Timeline |
| UNIQA Insurance Group |
| JLEN Environmental Assets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UNIQA Insurance and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and JLEN Environmental
The main advantage of trading using opposite UNIQA Insurance and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| UNIQA Insurance vs. Impax Asset Management | UNIQA Insurance vs. Everyman Media Group | UNIQA Insurance vs. MediaZest plc | UNIQA Insurance vs. Coor Service Management |
| JLEN Environmental vs. Ebro Foods | JLEN Environmental vs. Edita Food Industries | JLEN Environmental vs. Premier Foods PLC | JLEN Environmental vs. Public Storage |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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