Correlation Between UNIQA Insurance and Mulberry Group
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Mulberry Group 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 Mulberry Group 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 Mulberry Group PLC, you can compare the effects of market volatilities on UNIQA Insurance and Mulberry Group 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 Mulberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Mulberry Group.
Diversification Opportunities for UNIQA Insurance and Mulberry Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UNIQA and Mulberry is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Mulberry Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mulberry Group 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 Mulberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mulberry Group PLC has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Mulberry Group go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Mulberry Group
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.2 times more return on investment than Mulberry Group. However, UNIQA Insurance Group is 5.07 times less risky than Mulberry Group. It trades about 0.08 of its potential returns per unit of risk. Mulberry Group PLC is currently generating about -0.02 per unit of risk. If you would invest 682.00 in UNIQA Insurance Group on October 16, 2024 and sell it today you would earn a total of 110.00 from holding UNIQA Insurance Group or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.75% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Mulberry Group PLC
Performance |
| Timeline |
| UNIQA Insurance Group |
| Mulberry Group PLC |
UNIQA Insurance and Mulberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Mulberry Group
The main advantage of trading using opposite UNIQA Insurance and Mulberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Mulberry Group 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 Mulberry Group will offset losses from the drop in Mulberry Group's long position.| UNIQA Insurance vs. Allianz Technology Trust | UNIQA Insurance vs. Accesso Technology Group | UNIQA Insurance vs. Fevertree Drinks Plc | UNIQA Insurance vs. Iron Mountain |
| Mulberry Group vs. Sabre Insurance Group | Mulberry Group vs. Hecla Mining Co | Mulberry Group vs. UNIQA Insurance Group | Mulberry Group vs. Bisichi Mining 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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