Correlation Between ADRIATIC METALS and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both ADRIATIC 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 ADRIATIC 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 ADRIATIC METALS LS 013355 and UNIQA INSURANCE GR, you can compare the effects of market volatilities on ADRIATIC 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 ADRIATIC METALS with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and UNIQA INSURANCE.
Diversification Opportunities for ADRIATIC METALS and UNIQA INSURANCE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ADRIATIC and UNIQA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and UNIQA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA INSURANCE GR and ADRIATIC 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 ADRIATIC METALS LS 013355 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 GR has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and UNIQA INSURANCE
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 4.41 times more return on investment than UNIQA INSURANCE. However, ADRIATIC METALS is 4.41 times more volatile than UNIQA INSURANCE GR. It trades about 0.01 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.03 per unit of risk. If you would invest 234.00 in ADRIATIC METALS LS 013355 on October 13, 2024 and sell it today you would lose (10.00) from holding ADRIATIC METALS LS 013355 or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| ADRIATIC METALS LS |
| UNIQA INSURANCE GR |
ADRIATIC METALS and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and UNIQA INSURANCE
The main advantage of trading using opposite ADRIATIC METALS and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC 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.| ADRIATIC METALS vs. Superior Plus Corp | ADRIATIC METALS vs. NMI Holdings | ADRIATIC METALS vs. SIVERS SEMICONDUCTORS AB | ADRIATIC METALS vs. Talanx AG |
| UNIQA INSURANCE vs. SPORTING | UNIQA INSURANCE vs. Constellation Software | UNIQA INSURANCE vs. NTG Nordic Transport | UNIQA INSURANCE vs. BII Railway Transportation |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |