Correlation Between GreenX Metals and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both GreenX Metals 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 GreenX Metals and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and UNIQA Insurance Group, you can compare the effects of market volatilities on GreenX Metals 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 GreenX Metals with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and UNIQA Insurance.
Diversification Opportunities for GreenX Metals and UNIQA Insurance
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and UNIQA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and GreenX Metals 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 GreenX Metals 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 Group has no effect on the direction of GreenX Metals i.e., GreenX Metals and UNIQA Insurance go up and down completely randomly.
Pair Corralation between GreenX Metals and UNIQA Insurance
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the UNIQA Insurance. In addition to that, GreenX Metals is 2.48 times more volatile than UNIQA Insurance Group. It trades about -0.29 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.08 per unit of volatility. If you would invest 733.00 in UNIQA Insurance Group on August 30, 2024 and sell it today you would lose (14.00) from holding UNIQA Insurance Group or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. UNIQA Insurance Group
Performance |
| Timeline |
| GreenX Metals |
| UNIQA Insurance Group |
GreenX Metals and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and UNIQA Insurance
The main advantage of trading using opposite GreenX Metals and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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.| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Centamin PLC | GreenX Metals vs. Atalaya Mining |
| UNIQA Insurance vs. Tungsten West PLC | UNIQA Insurance vs. Argo Group Limited | UNIQA Insurance vs. Hardide PLC | UNIQA Insurance vs. Versarien PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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