Correlation Between H FARM and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both H FARM 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 H FARM and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H FARM SPA and UNIQA Insurance Group, you can compare the effects of market volatilities on H FARM 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 H FARM with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of H FARM and UNIQA Insurance.
Diversification Opportunities for H FARM and UNIQA Insurance
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5JQ and UNIQA is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding H FARM SPA 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 H FARM 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 H FARM SPA 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 H FARM i.e., H FARM and UNIQA Insurance go up and down completely randomly.
Pair Corralation between H FARM and UNIQA Insurance
Assuming the 90 days horizon H FARM SPA is expected to under-perform the UNIQA Insurance. In addition to that, H FARM is 7.49 times more volatile than UNIQA Insurance Group. It trades about -0.05 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.09 per unit of volatility. If you would invest 713.00 in UNIQA Insurance Group on September 3, 2024 and sell it today you would earn a total of 9.00 from holding UNIQA Insurance Group or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
H FARM SPA vs. UNIQA Insurance Group
Performance |
| Timeline |
| H FARM SPA |
| UNIQA Insurance Group |
H FARM and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H FARM and UNIQA Insurance
The main advantage of trading using opposite H FARM and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H FARM 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.| H FARM vs. ADRIATIC METALS LS 013355 | H FARM vs. GALENA MINING LTD | H FARM vs. Sunny Optical Technology | H FARM vs. GREENX METALS LTD |
| UNIQA Insurance vs. H FARM SPA | UNIQA Insurance vs. Soken Chemical Engineering | UNIQA Insurance vs. PTT Global Chemical | UNIQA Insurance vs. TITAN MACHINERY |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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