Correlation Between Fifth Third and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Fifth Third 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 Fifth Third and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fifth Third Bancorp and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Fifth Third 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 Fifth Third with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fifth Third and UNIQA INSURANCE.
Diversification Opportunities for Fifth Third and UNIQA INSURANCE
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fifth and UNIQA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fifth Third Bancorp 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 Fifth Third 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 Fifth Third Bancorp 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 Fifth Third i.e., Fifth Third and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Fifth Third and UNIQA INSURANCE
Assuming the 90 days horizon Fifth Third Bancorp is expected to under-perform the UNIQA INSURANCE. In addition to that, Fifth Third is 1.16 times more volatile than UNIQA INSURANCE GR. It trades about -0.42 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.18 per unit of volatility. If you would invest 731.00 in UNIQA INSURANCE GR on September 24, 2024 and sell it today you would earn a total of 30.00 from holding UNIQA INSURANCE GR or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fifth Third Bancorp vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| Fifth Third Bancorp |
| UNIQA INSURANCE GR |
Fifth Third and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fifth Third and UNIQA INSURANCE
The main advantage of trading using opposite Fifth Third and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fifth Third 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.| Fifth Third vs. The PNC Financial | Fifth Third vs. MT Bank Corp | Fifth Third vs. Huntington Bancshares Incorporated | Fifth Third vs. Regions Financial |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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