Correlation Between GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE GR, you can compare the effects of market volatilities on GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE.
Diversification Opportunities for GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GAZTRTECHNIUADR15EO01 and UNIQA is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 i.e., GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE
Assuming the 90 days trading horizon GAZTRTECHNIUADR15EO01 is expected to generate 2.37 times more return on investment than UNIQA INSURANCE. However, GAZTRTECHNIUADR15EO01 is 2.37 times more volatile than UNIQA INSURANCE GR. It trades about 0.06 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.05 per unit of risk. If you would invest 1,748 in GAZTRTECHNIUADR15EO01 on October 30, 2024 and sell it today you would earn a total of 1,172 from holding GAZTRTECHNIUADR15EO01 or generate 67.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAZTRTECHNIUADR15EO01 vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| GAZTRTECHNIUADR15EO01 |
| UNIQA INSURANCE GR |
GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE
The main advantage of trading using opposite GAZTRTECHNIUADR15EO01 and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAZTRTECHNIUADR15EO01 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.| GAZTRTECHNIUADR15EO01 vs. Apple Inc | GAZTRTECHNIUADR15EO01 vs. Apple Inc | GAZTRTECHNIUADR15EO01 vs. Apple Inc | GAZTRTECHNIUADR15EO01 vs. Apple Inc |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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