Correlation Between Royal Bank and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Royal Bank 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 Royal Bank and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royal Bank of and UNIQA Insurance Group, you can compare the effects of market volatilities on Royal Bank 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 Royal Bank with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Bank and UNIQA Insurance.
Diversification Opportunities for Royal Bank and UNIQA Insurance
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Royal and UNIQA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Royal Bank of 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 Royal Bank 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 Royal Bank of 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 Royal Bank i.e., Royal Bank and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Royal Bank and UNIQA Insurance
Assuming the 90 days trading horizon Royal Bank of is expected to generate 1.11 times more return on investment than UNIQA Insurance. However, Royal Bank is 1.11 times more volatile than UNIQA Insurance Group. It trades about 0.14 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 10,629 in Royal Bank of on September 1, 2024 and sell it today you would earn a total of 1,924 from holding Royal Bank of or generate 18.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.47% |
| Values | Daily Returns |
Royal Bank of vs. UNIQA Insurance Group
Performance |
| Timeline |
| Royal Bank |
| UNIQA Insurance Group |
Royal Bank and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royal Bank and UNIQA Insurance
The main advantage of trading using opposite Royal Bank and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Bank 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.| Royal Bank vs. Fevertree Drinks Plc | Royal Bank vs. Bytes Technology | Royal Bank vs. Check Point Software | Royal Bank vs. DXC Technology Co |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| 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 | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |