Correlation Between FUYO GENERAL and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and UNIQA INSURANCE GR, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and UNIQA INSURANCE.
Diversification Opportunities for FUYO GENERAL and UNIQA INSURANCE
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FUYO and UNIQA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE 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 FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between FUYO GENERAL and UNIQA INSURANCE
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the UNIQA INSURANCE. In addition to that, FUYO GENERAL is 2.16 times more volatile than UNIQA INSURANCE GR. It trades about -0.03 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.65 per unit of volatility. If you would invest 742.00 in UNIQA INSURANCE GR on October 15, 2024 and sell it today you would earn a total of 48.00 from holding UNIQA INSURANCE GR or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| UNIQA INSURANCE GR |
FUYO GENERAL and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and UNIQA INSURANCE
The main advantage of trading using opposite FUYO GENERAL and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. TRI CHEMICAL LABORATINC | FUYO GENERAL vs. New Residential Investment | FUYO GENERAL vs. Japan Asia Investment | FUYO GENERAL vs. Keck Seng Investments |
| UNIQA INSURANCE vs. UNITED RENTALS | UNIQA INSURANCE vs. FUYO GENERAL LEASE | UNIQA INSURANCE vs. Fortescue Metals Group | UNIQA INSURANCE vs. Air Lease |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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