Correlation Between UNIQA Insurance and Mind Gym
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Mind Gym 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 Mind Gym 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 Mind Gym, you can compare the effects of market volatilities on UNIQA Insurance and Mind Gym 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 Mind Gym. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Mind Gym.
Diversification Opportunities for UNIQA Insurance and Mind Gym
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UNIQA and Mind is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Mind Gym in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Gym 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 Mind Gym. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Gym has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Mind Gym go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Mind Gym
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.26 times more return on investment than Mind Gym. However, UNIQA Insurance Group is 3.83 times less risky than Mind Gym. It trades about -0.05 of its potential returns per unit of risk. Mind Gym is currently generating about -0.14 per unit of risk. If you would invest 766.00 in UNIQA Insurance Group on September 1, 2024 and sell it today you would lose (47.00) from holding UNIQA Insurance Group or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.23% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Mind Gym
Performance |
| Timeline |
| UNIQA Insurance Group |
| Mind Gym |
UNIQA Insurance and Mind Gym Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Mind Gym
The main advantage of trading using opposite UNIQA Insurance and Mind Gym positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Mind Gym 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 Mind Gym will offset losses from the drop in Mind Gym'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 |
| Mind Gym vs. Lundin Mining Corp | Mind Gym vs. Bisichi Mining PLC | Mind Gym vs. Greenroc Mining PLC | Mind Gym vs. Spirent Communications plc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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