Correlation Between Adtalem Global and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Adtalem Global 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 Adtalem Global and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adtalem Global Education and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Adtalem Global 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 Adtalem Global with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adtalem Global and UNIQA INSURANCE.
Diversification Opportunities for Adtalem Global and UNIQA INSURANCE
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Adtalem and UNIQA is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Adtalem Global Education 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 Adtalem Global 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 Adtalem Global Education 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 Adtalem Global i.e., Adtalem Global and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Adtalem Global and UNIQA INSURANCE
Assuming the 90 days trading horizon Adtalem Global Education is expected to generate 2.84 times more return on investment than UNIQA INSURANCE. However, Adtalem Global is 2.84 times more volatile than UNIQA INSURANCE GR. It trades about 0.28 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.26 per unit of risk. If you would invest 9,150 in Adtalem Global Education on November 7, 2024 and sell it today you would earn a total of 1,050 from holding Adtalem Global Education or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adtalem Global Education vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| Adtalem Global Education |
| UNIQA INSURANCE GR |
Adtalem Global and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adtalem Global and UNIQA INSURANCE
The main advantage of trading using opposite Adtalem Global and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adtalem Global 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.| Adtalem Global vs. PLAYTECH | Adtalem Global vs. BROADPEAK SA EO | Adtalem Global vs. Air Transport Services | Adtalem Global vs. PLAY2CHILL SA ZY |
| UNIQA INSURANCE vs. CVR Medical Corp | UNIQA INSURANCE vs. Inspire Medical Systems | UNIQA INSURANCE vs. Canon Marketing Japan | UNIQA INSURANCE vs. IMAGIN MEDICAL INC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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