Correlation Between Hong Kong and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Hong Kong 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 Hong Kong and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hong Kong Land and UNIQA Insurance Group, you can compare the effects of market volatilities on Hong Kong 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 Hong Kong with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hong Kong and UNIQA Insurance.
Diversification Opportunities for Hong Kong and UNIQA Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hong and UNIQA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hong Kong Land 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 Hong Kong 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 Hong Kong Land 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 Hong Kong i.e., Hong Kong and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Hong Kong and UNIQA Insurance
Assuming the 90 days trading horizon Hong Kong Land is expected to generate 0.08 times more return on investment than UNIQA Insurance. However, Hong Kong Land is 12.14 times less risky than UNIQA Insurance. It trades about 0.09 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.05 per unit of risk. If you would invest 735.00 in Hong Kong Land on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Hong Kong Land or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hong Kong Land vs. UNIQA Insurance Group
Performance |
| Timeline |
| Hong Kong Land |
| UNIQA Insurance Group |
Hong Kong and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hong Kong and UNIQA Insurance
The main advantage of trading using opposite Hong Kong and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hong Kong 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.| Hong Kong vs. Neometals | Hong Kong vs. McEwen Mining | Hong Kong vs. CompuGroup Medical AG | Hong Kong vs. Wheaton Precious Metals |
| UNIQA Insurance vs. Panther Metals PLC | UNIQA Insurance vs. McEwen Mining | UNIQA Insurance vs. Molson Coors Beverage | UNIQA Insurance vs. Central Asia Metals |
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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