Correlation Between UNIQA Insurance and Playtech Plc
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Playtech Plc 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 Playtech Plc 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 Playtech Plc, you can compare the effects of market volatilities on UNIQA Insurance and Playtech Plc 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 Playtech Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Playtech Plc.
Diversification Opportunities for UNIQA Insurance and Playtech Plc
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Playtech is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Playtech Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtech 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 Playtech Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtech Plc has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Playtech Plc go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Playtech Plc
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 2.06 times less return on investment than Playtech Plc. But when comparing it to its historical volatility, UNIQA Insurance Group is 2.66 times less risky than Playtech Plc. It trades about 0.05 of its potential returns per unit of risk. Playtech Plc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 54,800 in Playtech Plc on August 26, 2024 and sell it today you would earn a total of 17,700 from holding Playtech Plc or generate 32.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.6% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Playtech Plc
Performance |
| Timeline |
| UNIQA Insurance Group |
| Playtech Plc |
UNIQA Insurance and Playtech Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Playtech Plc
The main advantage of trading using opposite UNIQA Insurance and Playtech Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Playtech Plc 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 Playtech Plc will offset losses from the drop in Playtech Plc's long position.| UNIQA Insurance vs. Coeur Mining | UNIQA Insurance vs. Atalaya Mining | UNIQA Insurance vs. GoldMining | UNIQA Insurance vs. Deltex Medical Group |
| Playtech Plc vs. UNIQA Insurance Group | Playtech Plc vs. Central Asia Metals | Playtech Plc vs. Vienna Insurance Group | Playtech Plc vs. Endeavour 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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