Correlation Between UNIQA Insurance and Science In
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Science In 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 Science In 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 Science in Sport, you can compare the effects of market volatilities on UNIQA Insurance and Science In 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 Science In. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Science In.
Diversification Opportunities for UNIQA Insurance and Science In
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Science is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Science in Sport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science in Sport 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 Science In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science in Sport has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Science In go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Science In
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 4.07 times less return on investment than Science In. But when comparing it to its historical volatility, UNIQA Insurance Group is 2.36 times less risky than Science In. It trades about 0.07 of its potential returns per unit of risk. Science in Sport is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,375 in Science in Sport on October 16, 2024 and sell it today you would earn a total of 1,225 from holding Science in Sport or generate 89.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Science in Sport
Performance |
| Timeline |
| UNIQA Insurance Group |
| Science in Sport |
UNIQA Insurance and Science In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Science In
The main advantage of trading using opposite UNIQA Insurance and Science In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Science In 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 Science In will offset losses from the drop in Science In's long position.| UNIQA Insurance vs. Zegona Communications Plc | UNIQA Insurance vs. Vulcan Materials Co | UNIQA Insurance vs. Verizon Communications | UNIQA Insurance vs. Spirent Communications plc |
| Science In vs. Molson Coors Beverage | Science In vs. Tata Steel Limited | Science In vs. Dentsply Sirona | Science In 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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