Correlation Between Cembra Money and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Cembra Money 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 Cembra Money and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and UNIQA Insurance Group, you can compare the effects of market volatilities on Cembra Money 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 Cembra Money with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and UNIQA Insurance.
Diversification Opportunities for Cembra Money and UNIQA Insurance
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cembra and UNIQA is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank 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 Cembra Money 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 Cembra Money Bank 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 Cembra Money i.e., Cembra Money and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Cembra Money and UNIQA Insurance
Assuming the 90 days trading horizon Cembra Money Bank is expected to generate 1.51 times more return on investment than UNIQA Insurance. However, Cembra Money is 1.51 times more volatile than UNIQA Insurance Group. It trades about 0.07 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.02 per unit of risk. If you would invest 6,498 in Cembra Money Bank on September 12, 2024 and sell it today you would earn a total of 1,852 from holding Cembra Money Bank or generate 28.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.75% |
| Values | Daily Returns |
Cembra Money Bank vs. UNIQA Insurance Group
Performance |
| Timeline |
| Cembra Money Bank |
| UNIQA Insurance Group |
Cembra Money and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and UNIQA Insurance
The main advantage of trading using opposite Cembra Money and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money 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.| Cembra Money vs. Hong Kong Land | Cembra Money vs. Neometals | Cembra Money vs. Coor Service Management | Cembra Money vs. Fidelity Sustainable USD |
| UNIQA Insurance vs. Prudential Financial | UNIQA Insurance vs. Norman Broadbent Plc | UNIQA Insurance vs. Ross Stores | UNIQA Insurance vs. Cembra Money Bank |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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