Correlation Between Uniper SE and GoldMining
Can any of the company-specific risk be diversified away by investing in both Uniper SE and GoldMining 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 GoldMining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and GoldMining, you can compare the effects of market volatilities on Uniper SE and GoldMining 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 GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and GoldMining.
Diversification Opportunities for Uniper SE and GoldMining
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uniper and GoldMining is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and GoldMining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GoldMining 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 GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GoldMining has no effect on the direction of Uniper SE i.e., Uniper SE and GoldMining go up and down completely randomly.
Pair Corralation between Uniper SE and GoldMining
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the GoldMining. In addition to that, Uniper SE is 1.21 times more volatile than GoldMining. It trades about -0.09 of its total potential returns per unit of risk. GoldMining is currently generating about -0.08 per unit of volatility. If you would invest 119.00 in GoldMining on September 24, 2024 and sell it today you would lose (3.00) from holding GoldMining or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Uniper SE vs. GoldMining
Performance |
| Timeline |
| Uniper SE |
| GoldMining |
Uniper SE and GoldMining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and GoldMining
The main advantage of trading using opposite Uniper SE and GoldMining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, GoldMining 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 GoldMining will offset losses from the drop in GoldMining's long position.| Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
| GoldMining vs. Uniper SE | GoldMining vs. Mulberry Group PLC | GoldMining vs. London Security Plc | GoldMining 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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