Correlation Between UNIQA Insurance and Monks Investment
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Monks 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 Monks 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 Monks Investment Trust, you can compare the effects of market volatilities on UNIQA Insurance and Monks 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 Monks Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Monks Investment.
Diversification Opportunities for UNIQA Insurance and Monks Investment
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Monks is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Monks Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monks 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 Monks Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monks Investment Trust has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Monks Investment go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Monks Investment
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 8.75 times less return on investment than Monks Investment. But when comparing it to its historical volatility, UNIQA Insurance Group is 1.38 times less risky than Monks Investment. It trades about 0.02 of its potential returns per unit of risk. Monks Investment Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 96,321 in Monks Investment Trust on August 29, 2024 and sell it today you would earn a total of 31,079 from holding Monks Investment Trust or generate 32.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Monks Investment Trust
Performance |
| Timeline |
| UNIQA Insurance Group |
| Monks Investment Trust |
UNIQA Insurance and Monks Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Monks Investment
The main advantage of trading using opposite UNIQA Insurance and Monks Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Monks 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 Monks Investment will offset losses from the drop in Monks Investment's long position.| UNIQA Insurance vs. Lendinvest PLC | UNIQA Insurance vs. Neometals | UNIQA Insurance vs. Albion Technology General | UNIQA Insurance vs. Jupiter Fund Management |
| Monks Investment vs. Toyota Motor Corp | Monks Investment vs. Lendinvest PLC | Monks Investment vs. Neometals | Monks Investment vs. Coor Service Management |
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 CEOs Directory module to screen CEOs from public companies around the world.
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