Correlation Between UNIQA Insurance and Zinc Media
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Zinc Media 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 Zinc Media 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 Zinc Media Group, you can compare the effects of market volatilities on UNIQA Insurance and Zinc Media 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 Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Zinc Media.
Diversification Opportunities for UNIQA Insurance and Zinc Media
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Zinc is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media Group 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 Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Zinc Media go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Zinc Media
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.33 times more return on investment than Zinc Media. However, UNIQA Insurance Group is 3.03 times less risky than Zinc Media. It trades about 0.05 of its potential returns per unit of risk. Zinc Media Group is currently generating about -0.02 per unit of risk. If you would invest 672.00 in UNIQA Insurance Group on October 14, 2024 and sell it today you would earn a total of 129.00 from holding UNIQA Insurance Group or generate 19.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Zinc Media Group
Performance |
| Timeline |
| UNIQA Insurance Group |
| Zinc Media Group |
UNIQA Insurance and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Zinc Media
The main advantage of trading using opposite UNIQA Insurance and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| UNIQA Insurance vs. Sunny Optical Technology | UNIQA Insurance vs. Pfeiffer Vacuum Technology | UNIQA Insurance vs. Roadside Real Estate | UNIQA Insurance vs. Aptitude Software Group |
| Zinc Media vs. Compagnie Plastic Omnium | Zinc Media vs. Zurich Insurance Group | Zinc Media vs. JD Sports Fashion | Zinc Media 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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