Correlation Between UNIQA Insurance and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC, you can compare the effects of market volatilities on UNIQA Insurance and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Lendinvest PLC.
Diversification Opportunities for UNIQA Insurance and Lendinvest PLC
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UNIQA and Lendinvest is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Lendinvest PLC go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Lendinvest PLC
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 21.51 times less return on investment than Lendinvest PLC. But when comparing it to its historical volatility, UNIQA Insurance Group is 1.17 times less risky than Lendinvest PLC. It trades about 0.0 of its potential returns per unit of risk. Lendinvest PLC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Lendinvest PLC on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Lendinvest PLC or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Lendinvest PLC
Performance |
| Timeline |
| UNIQA Insurance Group |
| Lendinvest PLC |
UNIQA Insurance and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Lendinvest PLC
The main advantage of trading using opposite UNIQA Insurance and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC's long position.| UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance vs. Triad Group PLC |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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