Correlation Between UNIQA Insurance and Pets At
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Pets At 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 Pets At 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 Pets at Home, you can compare the effects of market volatilities on UNIQA Insurance and Pets At 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 Pets At. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Pets At.
Diversification Opportunities for UNIQA Insurance and Pets At
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Pets is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Pets at Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pets at Home 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 Pets At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pets at Home has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Pets At go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Pets At
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.73 times more return on investment than Pets At. However, UNIQA Insurance Group is 1.37 times less risky than Pets At. It trades about 0.43 of its potential returns per unit of risk. Pets at Home is currently generating about -0.6 per unit of risk. If you would invest 730.00 in UNIQA Insurance Group on October 11, 2024 and sell it today you would earn a total of 62.00 from holding UNIQA Insurance Group or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Pets at Home
Performance |
| Timeline |
| UNIQA Insurance Group |
| Pets at Home |
UNIQA Insurance and Pets At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Pets At
The main advantage of trading using opposite UNIQA Insurance and Pets At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Pets At 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 Pets At will offset losses from the drop in Pets At's long position.| UNIQA Insurance vs. Ebro Foods | UNIQA Insurance vs. Tyson Foods Cl | UNIQA Insurance vs. mobilezone holding AG | UNIQA Insurance vs. Axfood AB |
| Pets At vs. Axfood AB | Pets At vs. Spirent Communications plc | Pets At vs. Edita Food Industries | Pets At vs. Leroy Seafood 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 CEOs Directory module to screen CEOs from public companies around the world.
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