Correlation Between Silvercorp Metals and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Silvercorp Metals 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 Silvercorp Metals and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silvercorp Metals and UNIQA Insurance Group, you can compare the effects of market volatilities on Silvercorp Metals 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 Silvercorp Metals with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silvercorp Metals and UNIQA Insurance.
Diversification Opportunities for Silvercorp Metals and UNIQA Insurance
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silvercorp and UNIQA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals i.e., Silvercorp Metals and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Silvercorp Metals and UNIQA Insurance
Assuming the 90 days trading horizon Silvercorp Metals is expected to generate 4.17 times more return on investment than UNIQA Insurance. However, Silvercorp Metals is 4.17 times more volatile than UNIQA Insurance Group. It trades about 0.03 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 405.00 in Silvercorp Metals on September 18, 2024 and sell it today you would earn a total of 58.00 from holding Silvercorp Metals or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.01% |
| Values | Daily Returns |
Silvercorp Metals vs. UNIQA Insurance Group
Performance |
| Timeline |
| Silvercorp Metals |
| UNIQA Insurance Group |
Silvercorp Metals and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silvercorp Metals and UNIQA Insurance
The main advantage of trading using opposite Silvercorp Metals and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silvercorp Metals 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.| Silvercorp Metals vs. Ecclesiastical Insurance Office | Silvercorp Metals vs. Wheaton Precious Metals | Silvercorp Metals vs. Games Workshop Group | Silvercorp Metals vs. METALL ZUG AG |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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