Correlation Between Argo Group and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Argo Group 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 Argo Group and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group Limited and UNIQA Insurance Group, you can compare the effects of market volatilities on Argo Group 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 Argo Group with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and UNIQA Insurance.
Diversification Opportunities for Argo Group and UNIQA Insurance
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Argo and UNIQA is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited 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 Argo Group 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 Argo Group Limited 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 Argo Group i.e., Argo Group and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Argo Group and UNIQA Insurance
Assuming the 90 days trading horizon Argo Group Limited is expected to generate 2.02 times more return on investment than UNIQA Insurance. However, Argo Group is 2.02 times more volatile than UNIQA Insurance Group. It trades about 0.01 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.08 per unit of risk. If you would invest 400.00 in Argo Group Limited on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Argo Group Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Argo Group Limited vs. UNIQA Insurance Group
Performance |
| Timeline |
| Argo Group Limited |
| UNIQA Insurance Group |
Argo Group and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and UNIQA Insurance
The main advantage of trading using opposite Argo Group and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group 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.| Argo Group vs. Optima Health plc | Argo Group vs. Spire Healthcare Group | Argo Group vs. Universal Music Group | Argo Group vs. Naturhouse Health SA |
| UNIQA Insurance vs. Tungsten West PLC | UNIQA Insurance vs. Argo Group Limited | UNIQA Insurance vs. Hardide PLC | UNIQA Insurance vs. Versarien 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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |