Correlation Between AUST AGRICULTURAL and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both AUST AGRICULTURAL 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 AUST AGRICULTURAL and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUST AGRICULTURAL and UNIQA INSURANCE GR, you can compare the effects of market volatilities on AUST AGRICULTURAL 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 AUST AGRICULTURAL with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUST AGRICULTURAL and UNIQA INSURANCE.
Diversification Opportunities for AUST AGRICULTURAL and UNIQA INSURANCE
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AUST and UNIQA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AUST AGRICULTURAL 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 AUST AGRICULTURAL 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 AUST AGRICULTURAL 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 AUST AGRICULTURAL i.e., AUST AGRICULTURAL and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between AUST AGRICULTURAL and UNIQA INSURANCE
Assuming the 90 days trading horizon AUST AGRICULTURAL is expected to generate 0.84 times more return on investment than UNIQA INSURANCE. However, AUST AGRICULTURAL is 1.19 times less risky than UNIQA INSURANCE. It trades about 0.29 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.23 per unit of risk. If you would invest 81.00 in AUST AGRICULTURAL on November 30, 2024 and sell it today you would earn a total of 7.00 from holding AUST AGRICULTURAL or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUST AGRICULTURAL vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| AUST AGRICULTURAL |
| UNIQA INSURANCE GR |
AUST AGRICULTURAL and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUST AGRICULTURAL and UNIQA INSURANCE
The main advantage of trading using opposite AUST AGRICULTURAL and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUST AGRICULTURAL 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.| AUST AGRICULTURAL vs. GLG LIFE TECH | ||
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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