Correlation Between Journeo PLC and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Journeo PLC 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 Journeo PLC and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Journeo PLC and UNIQA Insurance Group, you can compare the effects of market volatilities on Journeo PLC 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 Journeo PLC with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Journeo PLC and UNIQA Insurance.
Diversification Opportunities for Journeo PLC and UNIQA Insurance
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Journeo and UNIQA is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Journeo PLC 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 Journeo PLC 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 Journeo PLC 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 Journeo PLC i.e., Journeo PLC and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Journeo PLC and UNIQA Insurance
Assuming the 90 days trading horizon Journeo PLC is expected to generate 2.06 times more return on investment than UNIQA Insurance. However, Journeo PLC is 2.06 times more volatile than UNIQA Insurance Group. It trades about 0.19 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.01 per unit of risk. If you would invest 26,950 in Journeo PLC on August 31, 2024 and sell it today you would earn a total of 2,350 from holding Journeo PLC or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Journeo PLC vs. UNIQA Insurance Group
Performance |
| Timeline |
| Journeo PLC |
| UNIQA Insurance Group |
Journeo PLC and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Journeo PLC and UNIQA Insurance
The main advantage of trading using opposite Journeo PLC and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Journeo PLC 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.| Journeo PLC vs. UNIQA Insurance Group | Journeo PLC vs. National Beverage Corp | Journeo PLC vs. Molson Coors Beverage | Journeo PLC vs. Fevertree Drinks Plc |
| UNIQA Insurance vs. Wizz Air Holdings | UNIQA Insurance vs. Applied Materials | UNIQA Insurance vs. Vulcan Materials Co | UNIQA Insurance vs. Martin Marietta Materials |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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