Correlation Between Dow Jones and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and UNIQA INSURANCE.
Diversification Opportunities for Dow Jones and UNIQA INSURANCE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dow and UNIQA is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Dow Jones and UNIQA INSURANCE
Assuming the 90 days trading horizon Dow Jones Industrial is expected to under-perform the UNIQA INSURANCE. In addition to that, Dow Jones is 1.37 times more volatile than UNIQA INSURANCE GR. It trades about -0.27 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.56 per unit of volatility. If you would invest 745.00 in UNIQA INSURANCE GR on October 13, 2024 and sell it today you would earn a total of 45.00 from holding UNIQA INSURANCE GR or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. UNIQA INSURANCE GR
Performance |
| Timeline |
Dow Jones and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
UNIQA INSURANCE GR
Pair trading matchups for UNIQA INSURANCE
Pair Trading with Dow Jones and UNIQA INSURANCE
The main advantage of trading using opposite Dow Jones and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Lululemon Athletica | Dow Jones vs. Vistra Energy Corp | Dow Jones vs. The Gap, | Dow Jones vs. Pool Corporation |
| UNIQA INSURANCE vs. SPORTING | UNIQA INSURANCE vs. Constellation Software | UNIQA INSURANCE vs. NTG Nordic Transport | UNIQA INSURANCE vs. BII Railway Transportation |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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