Correlation Between Uniper SE and Camellia Plc
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Camellia Plc 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 Camellia Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Camellia Plc, you can compare the effects of market volatilities on Uniper SE and Camellia Plc 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 Camellia Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Camellia Plc.
Diversification Opportunities for Uniper SE and Camellia Plc
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Uniper and Camellia is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Camellia Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Plc 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 Camellia Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Plc has no effect on the direction of Uniper SE i.e., Uniper SE and Camellia Plc go up and down completely randomly.
Pair Corralation between Uniper SE and Camellia Plc
Assuming the 90 days trading horizon Uniper SE is expected to generate 1.98 times less return on investment than Camellia Plc. In addition to that, Uniper SE is 2.2 times more volatile than Camellia Plc. It trades about 0.0 of its total potential returns per unit of risk. Camellia Plc is currently generating about 0.01 per unit of volatility. If you would invest 478,604 in Camellia Plc on October 13, 2024 and sell it today you would earn a total of 7,396 from holding Camellia Plc or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Uniper SE vs. Camellia Plc
Performance |
| Timeline |
| Uniper SE |
| Camellia Plc |
Uniper SE and Camellia Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Camellia Plc
The main advantage of trading using opposite Uniper SE and Camellia Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Camellia Plc 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 Camellia Plc will offset losses from the drop in Camellia Plc's long position.| Uniper SE vs. Accesso Technology Group | Uniper SE vs. Invesco Physical Silver | Uniper SE vs. Sabien Technology Group | Uniper SE vs. Coeur Mining |
| Camellia Plc vs. Samsung Electronics Co | Camellia Plc vs. Samsung Electronics Co | Camellia Plc vs. Toyota Motor Corp | Camellia Plc vs. MOL Hungarian Oil |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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