Correlation Between JAPAN AIRLINES and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both JAPAN AIRLINES 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 JAPAN AIRLINES and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAPAN AIRLINES and UNIQA INSURANCE GR, you can compare the effects of market volatilities on JAPAN AIRLINES 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 JAPAN AIRLINES with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN AIRLINES and UNIQA INSURANCE.
Diversification Opportunities for JAPAN AIRLINES and UNIQA INSURANCE
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JAPAN and UNIQA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN AIRLINES 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 JAPAN AIRLINES 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 JAPAN AIRLINES 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 JAPAN AIRLINES i.e., JAPAN AIRLINES and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between JAPAN AIRLINES and UNIQA INSURANCE
Assuming the 90 days trading horizon JAPAN AIRLINES is expected to under-perform the UNIQA INSURANCE. In addition to that, JAPAN AIRLINES is 1.7 times more volatile than UNIQA INSURANCE GR. It trades about -0.05 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.07 per unit of volatility. If you would invest 719.00 in UNIQA INSURANCE GR on October 29, 2024 and sell it today you would earn a total of 94.00 from holding UNIQA INSURANCE GR or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
JAPAN AIRLINES vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| JAPAN AIRLINES |
| UNIQA INSURANCE GR |
JAPAN AIRLINES and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAPAN AIRLINES and UNIQA INSURANCE
The main advantage of trading using opposite JAPAN AIRLINES and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN AIRLINES 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.| JAPAN AIRLINES vs. Grupo Carso SAB | JAPAN AIRLINES vs. GEELY AUTOMOBILE | JAPAN AIRLINES vs. Apollo Investment Corp | JAPAN AIRLINES vs. Geely Automobile Holdings |
| UNIQA INSURANCE vs. Medical Properties Trust | UNIQA INSURANCE vs. GAZTRTECHNIUADR15EO01 | UNIQA INSURANCE vs. ONWARD MEDICAL BV | UNIQA INSURANCE vs. AAC TECHNOLOGHLDGADR |
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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