Correlation Between Carnegie Clean and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean 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 Carnegie Clean and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Carnegie Clean 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 Carnegie Clean with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and UNIQA INSURANCE.
Diversification Opportunities for Carnegie Clean and UNIQA INSURANCE
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carnegie and UNIQA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy 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 Carnegie Clean 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 Carnegie Clean Energy 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 Carnegie Clean i.e., Carnegie Clean and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Carnegie Clean and UNIQA INSURANCE
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 9.33 times more return on investment than UNIQA INSURANCE. However, Carnegie Clean is 9.33 times more volatile than UNIQA INSURANCE GR. It trades about 0.01 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 5.00 in Carnegie Clean Energy on October 27, 2024 and sell it today you would lose (2.88) from holding Carnegie Clean Energy or give up 57.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| Carnegie Clean Energy |
| UNIQA INSURANCE GR |
Carnegie Clean and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and UNIQA INSURANCE
The main advantage of trading using opposite Carnegie Clean and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean 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.| Carnegie Clean vs. AGNC INVESTMENT | Carnegie Clean vs. JLF INVESTMENT | Carnegie Clean vs. Allegheny Technologies Incorporated | Carnegie Clean vs. SOFI TECHNOLOGIES |
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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