Correlation Between Uniper SE and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Uniper SE 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 Uniper SE and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and UNIQA Insurance Group, you can compare the effects of market volatilities on Uniper SE 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 Uniper SE with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and UNIQA Insurance.
Diversification Opportunities for Uniper SE and UNIQA Insurance
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uniper and UNIQA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE 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 Uniper SE 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 Uniper SE 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 Uniper SE i.e., Uniper SE and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Uniper SE and UNIQA Insurance
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the UNIQA Insurance. In addition to that, Uniper SE is 3.19 times more volatile than UNIQA Insurance Group. It trades about -0.03 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.05 per unit of volatility. If you would invest 768.00 in UNIQA Insurance Group on September 3, 2024 and sell it today you would lose (49.00) from holding UNIQA Insurance Group or give up 6.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniper SE vs. UNIQA Insurance Group
Performance |
| Timeline |
| Uniper SE |
| UNIQA Insurance Group |
Uniper SE and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and UNIQA Insurance
The main advantage of trading using opposite Uniper SE and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE 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.| Uniper SE vs. Bytes Technology | Uniper SE vs. Livermore Investments Group | Uniper SE vs. FC Investment Trust | Uniper SE vs. Universal Display Corp |
| UNIQA Insurance vs. Panther Metals PLC | UNIQA Insurance vs. McEwen Mining | UNIQA Insurance vs. Molson Coors Beverage | UNIQA Insurance vs. Central Asia Metals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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