Correlation Between Albion Technology and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Albion Technology 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 Albion Technology and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albion Technology General and UNIQA Insurance Group, you can compare the effects of market volatilities on Albion Technology 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 Albion Technology with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albion Technology and UNIQA Insurance.
Diversification Opportunities for Albion Technology and UNIQA Insurance
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Albion and UNIQA is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Albion Technology General 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 Albion Technology 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 Albion Technology General 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 Albion Technology i.e., Albion Technology and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Albion Technology and UNIQA Insurance
Assuming the 90 days trading horizon Albion Technology General is expected to under-perform the UNIQA Insurance. In addition to that, Albion Technology is 1.48 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 0.0 per unit of volatility. If you would invest 719.00 in UNIQA Insurance Group on September 1, 2024 and sell it today you would earn a total of 0.00 from holding UNIQA Insurance Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albion Technology General vs. UNIQA Insurance Group
Performance |
| Timeline |
| Albion Technology General |
| UNIQA Insurance Group |
Albion Technology and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albion Technology and UNIQA Insurance
The main advantage of trading using opposite Albion Technology and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albion Technology 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.| Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Samsung Electronics Co | Albion Technology vs. Toyota Motor Corp | Albion Technology vs. Reliance Industries Ltd |
| UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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