Correlation Between Veolia Environnement and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Veolia Environnement 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 Veolia Environnement and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veolia Environnement VE and UNIQA Insurance Group, you can compare the effects of market volatilities on Veolia Environnement 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 Veolia Environnement with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veolia Environnement and UNIQA Insurance.
Diversification Opportunities for Veolia Environnement and UNIQA Insurance
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Veolia and UNIQA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Veolia Environnement VE 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 Veolia Environnement 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 Veolia Environnement VE 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 Veolia Environnement i.e., Veolia Environnement and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Veolia Environnement and UNIQA Insurance
Assuming the 90 days trading horizon Veolia Environnement VE is expected to generate 1.41 times more return on investment than UNIQA Insurance. However, Veolia Environnement is 1.41 times more volatile than UNIQA Insurance Group. It trades about 0.04 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.06 per unit of risk. If you would invest 2,232 in Veolia Environnement VE on September 18, 2024 and sell it today you would earn a total of 531.00 from holding Veolia Environnement VE or generate 23.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.6% |
| Values | Daily Returns |
Veolia Environnement VE vs. UNIQA Insurance Group
Performance |
| Timeline |
| Veolia Environnement |
| UNIQA Insurance Group |
Veolia Environnement and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veolia Environnement and UNIQA Insurance
The main advantage of trading using opposite Veolia Environnement and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veolia Environnement 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.| Veolia Environnement vs. JD Sports Fashion | Veolia Environnement vs. Molson Coors Beverage | Veolia Environnement vs. Prosiebensat 1 Media | Veolia Environnement vs. MediaZest plc |
| UNIQA Insurance vs. Veolia Environnement VE | UNIQA Insurance vs. Silvercorp Metals | UNIQA Insurance vs. GoldMining | UNIQA Insurance vs. Neometals |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |