Correlation Between UNIQA Insurance and Mobius Investment
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Mobius Investment 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 Mobius Investment 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 Mobius Investment Trust, you can compare the effects of market volatilities on UNIQA Insurance and Mobius Investment 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 Mobius Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Mobius Investment.
Diversification Opportunities for UNIQA Insurance and Mobius Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UNIQA and Mobius is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Mobius Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobius Investment Trust 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 Mobius Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobius Investment Trust has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Mobius Investment go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Mobius Investment
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.96 times more return on investment than Mobius Investment. However, UNIQA Insurance Group is 1.04 times less risky than Mobius Investment. It trades about 0.31 of its potential returns per unit of risk. Mobius Investment Trust is currently generating about 0.05 per unit of risk. If you would invest 769.00 in UNIQA Insurance Group on October 30, 2024 and sell it today you would earn a total of 50.00 from holding UNIQA Insurance Group or generate 6.5% 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. Mobius Investment Trust
Performance |
| Timeline |
| UNIQA Insurance Group |
| Mobius Investment Trust |
UNIQA Insurance and Mobius Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Mobius Investment
The main advantage of trading using opposite UNIQA Insurance and Mobius Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Mobius Investment 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 Mobius Investment will offset losses from the drop in Mobius Investment's long position.| UNIQA Insurance vs. United Airlines Holdings | UNIQA Insurance vs. Infrastrutture Wireless Italiane | UNIQA Insurance vs. Southwest Airlines Co | UNIQA Insurance vs. Planet Fitness Cl |
| Mobius Investment vs. AfriTin Mining | Mobius Investment vs. Sealed Air Corp | Mobius Investment vs. Blackrock World Mining | Mobius Investment vs. Lundin Mining Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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