Correlation Between UNIQA Insurance and Toyota
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Toyota 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 Toyota 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 Toyota Motor Corp, you can compare the effects of market volatilities on UNIQA Insurance and Toyota 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 Toyota. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Toyota.
Diversification Opportunities for UNIQA Insurance and Toyota
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UNIQA and Toyota is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Toyota Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toyota Motor Corp 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 Toyota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toyota Motor Corp has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Toyota go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Toyota
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 3.23 times less return on investment than Toyota. But when comparing it to its historical volatility, UNIQA Insurance Group is 2.89 times less risky than Toyota. It trades about 0.05 of its potential returns per unit of risk. Toyota Motor Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 180,666 in Toyota Motor Corp on November 7, 2024 and sell it today you would earn a total of 109,016 from holding Toyota Motor Corp or generate 60.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.57% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Toyota Motor Corp
Performance |
| Timeline |
| UNIQA Insurance Group |
| Toyota Motor Corp |
UNIQA Insurance and Toyota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Toyota
The main advantage of trading using opposite UNIQA Insurance and Toyota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Toyota 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 Toyota will offset losses from the drop in Toyota's long position.| UNIQA Insurance vs. Sovereign Metals | UNIQA Insurance vs. bet at home AG | UNIQA Insurance vs. Creo Medical Group | UNIQA Insurance vs. URU Metals |
| Toyota vs. Chrysalis Investments | Toyota vs. Mobius Investment Trust | Toyota vs. EJF Investments | Toyota vs. Kaufman Et Broad |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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