Correlation Between Cez AS and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Cez AS 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 Cez AS and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cez AS and UNIQA Insurance Group, you can compare the effects of market volatilities on Cez AS 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 Cez AS with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cez AS and UNIQA Insurance.
Diversification Opportunities for Cez AS and UNIQA Insurance
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cez and UNIQA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cez AS 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 Cez AS 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 Cez AS 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 Cez AS i.e., Cez AS and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Cez AS and UNIQA Insurance
Assuming the 90 days trading horizon Cez AS is expected to generate 1.2 times more return on investment than UNIQA Insurance. However, Cez AS is 1.2 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 0.01 per unit of risk. If you would invest 93,727 in Cez AS on August 25, 2024 and sell it today you would earn a total of 2,423 from holding Cez AS or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Cez AS vs. UNIQA Insurance Group
Performance |
| Timeline |
| Cez AS |
| UNIQA Insurance Group |
Cez AS and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cez AS and UNIQA Insurance
The main advantage of trading using opposite Cez AS and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cez AS 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.| Cez AS vs. Komercni Banka AS | Cez AS vs. Moneta Money Bank | Cez AS vs. Erste Group Bank | Cez AS vs. Colt CZ Group |
| UNIQA Insurance vs. Cez AS | UNIQA Insurance vs. MT 1997 AS | UNIQA Insurance vs. Kofola CeskoSlovensko as | UNIQA Insurance vs. HARDWARIO as |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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