Correlation Between UNIQA Insurance and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Ocean Harvest 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 Ocean Harvest 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 Ocean Harvest Technology, you can compare the effects of market volatilities on UNIQA Insurance and Ocean Harvest 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 Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Ocean Harvest.
Diversification Opportunities for UNIQA Insurance and Ocean Harvest
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Ocean is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology 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 Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Ocean Harvest go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Ocean Harvest
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.25 times more return on investment than Ocean Harvest. However, UNIQA Insurance Group is 3.99 times less risky than Ocean Harvest. It trades about 0.08 of its potential returns per unit of risk. Ocean Harvest Technology is currently generating about -0.01 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 Against |
| Strength | Very Weak |
| Accuracy | 97.75% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Ocean Harvest Technology
Performance |
| Timeline |
| UNIQA Insurance Group |
| Ocean Harvest Technology |
UNIQA Insurance and Ocean Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Ocean Harvest
The main advantage of trading using opposite UNIQA Insurance and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest'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 |
| Ocean Harvest vs. Discover Financial Services | Ocean Harvest vs. Spirent Communications plc | Ocean Harvest vs. Batm Advanced Communications | Ocean Harvest vs. UNIQA Insurance Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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