Correlation Between China Reinsurance and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both China Reinsurance 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 China Reinsurance and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Reinsurance and UNIQA INSURANCE GR, you can compare the effects of market volatilities on China Reinsurance 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 China Reinsurance with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reinsurance and UNIQA INSURANCE.
Diversification Opportunities for China Reinsurance and UNIQA INSURANCE
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and UNIQA is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding China Reinsurance 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 China Reinsurance 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 China Reinsurance 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 China Reinsurance i.e., China Reinsurance and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between China Reinsurance and UNIQA INSURANCE
Assuming the 90 days horizon China Reinsurance is expected to generate 18.84 times more return on investment than UNIQA INSURANCE. However, China Reinsurance is 18.84 times more volatile than UNIQA INSURANCE GR. It trades about 0.08 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.06 per unit of risk. If you would invest 4.50 in China Reinsurance on October 16, 2024 and sell it today you would earn a total of 5.50 from holding China Reinsurance or generate 122.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Reinsurance vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| China Reinsurance |
| UNIQA INSURANCE GR |
China Reinsurance and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reinsurance and UNIQA INSURANCE
The main advantage of trading using opposite China Reinsurance and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reinsurance 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.| China Reinsurance vs. Ubisoft Entertainment SA | China Reinsurance vs. Tencent Music Entertainment | China Reinsurance vs. Townsquare Media | China Reinsurance vs. alstria office REIT AG |
| UNIQA INSURANCE vs. CITY OFFICE REIT | UNIQA INSURANCE vs. DFS Furniture PLC | UNIQA INSURANCE vs. Hisense Home Appliances | UNIQA INSURANCE vs. Gol Intelligent Airlines |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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