Correlation Between Vulcan Materials and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Vulcan Materials and UNIQA Insurance 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 Vulcan Materials and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vulcan Materials Co and UNIQA Insurance Group, you can compare the effects of market volatilities on Vulcan Materials and UNIQA Insurance 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 Vulcan Materials with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Materials and UNIQA Insurance.
Diversification Opportunities for Vulcan Materials and UNIQA Insurance
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vulcan and UNIQA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Materials Co and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and Vulcan Materials 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 Vulcan Materials Co are associated (or correlated) with UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of Vulcan Materials i.e., Vulcan Materials and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Vulcan Materials and UNIQA Insurance
Assuming the 90 days trading horizon Vulcan Materials Co is expected to generate 1.95 times more return on investment than UNIQA Insurance. However, Vulcan Materials is 1.95 times more volatile than UNIQA Insurance Group. It trades about 0.08 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.05 per unit of risk. If you would invest 24,811 in Vulcan Materials Co on September 2, 2024 and sell it today you would earn a total of 3,975 from holding Vulcan Materials Co or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Vulcan Materials Co vs. UNIQA Insurance Group
Performance |
| Timeline |
| Vulcan Materials |
| UNIQA Insurance Group |
Vulcan Materials and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vulcan Materials and UNIQA Insurance
The main advantage of trading using opposite Vulcan Materials and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Materials position performs unexpectedly, UNIQA Insurance 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 UNIQA Insurance will offset losses from the drop in UNIQA Insurance's long position.| Vulcan Materials vs. Uniper SE | Vulcan Materials vs. Mulberry Group PLC | Vulcan Materials vs. London Security Plc | Vulcan Materials vs. Triad Group PLC |
| UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance vs. Triad Group PLC |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |