Correlation Between UNIQA Insurance and Symphony Environmental
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Symphony Environmental 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 Symphony Environmental 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 Symphony Environmental Technologies, you can compare the effects of market volatilities on UNIQA Insurance and Symphony Environmental 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 Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Symphony Environmental.
Diversification Opportunities for UNIQA Insurance and Symphony Environmental
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Symphony is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental 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 Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Symphony Environmental go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Symphony Environmental
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.41 times more return on investment than Symphony Environmental. However, UNIQA Insurance Group is 2.45 times less risky than Symphony Environmental. It trades about 0.31 of its potential returns per unit of risk. Symphony Environmental Technologies is currently generating about 0.01 per unit of risk. If you would invest 741.00 in UNIQA Insurance Group on October 12, 2024 and sell it today you would earn a total of 43.00 from holding UNIQA Insurance Group or generate 5.8% 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. Symphony Environmental Technol
Performance |
| Timeline |
| UNIQA Insurance Group |
| Symphony Environmental |
UNIQA Insurance and Symphony Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Symphony Environmental
The main advantage of trading using opposite UNIQA Insurance and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Symphony Environmental 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 Symphony Environmental will offset losses from the drop in Symphony Environmental'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 |
| Symphony Environmental vs. UNIQA Insurance Group | Symphony Environmental vs. Metro Bank PLC | Symphony Environmental vs. Zegona Communications Plc | Symphony Environmental vs. Sparebank 1 SR |
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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