Correlation Between JT ARCH and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both JT ARCH 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 JT ARCH and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JT ARCH INVESTMENTS and UNIQA Insurance Group, you can compare the effects of market volatilities on JT ARCH 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 JT ARCH with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of JT ARCH and UNIQA Insurance.
Diversification Opportunities for JT ARCH and UNIQA Insurance
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between JTINA and UNIQA is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding JT ARCH INVESTMENTS 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 JT ARCH 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 JT ARCH INVESTMENTS 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 JT ARCH i.e., JT ARCH and UNIQA Insurance go up and down completely randomly.
Pair Corralation between JT ARCH and UNIQA Insurance
Assuming the 90 days trading horizon JT ARCH is expected to generate 1.11 times less return on investment than UNIQA Insurance. But when comparing it to its historical volatility, JT ARCH INVESTMENTS is 3.51 times less risky than UNIQA Insurance. It trades about 0.43 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 19,760 in UNIQA Insurance Group on November 3, 2024 and sell it today you would earn a total of 640.00 from holding UNIQA Insurance Group or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
JT ARCH INVESTMENTS vs. UNIQA Insurance Group
Performance |
| Timeline |
| JT ARCH INVESTMENTS |
| UNIQA Insurance Group |
JT ARCH and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JT ARCH and UNIQA Insurance
The main advantage of trading using opposite JT ARCH and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JT ARCH 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.| JT ARCH vs. Raiffeisen Bank International | JT ARCH vs. Komercni Banka AS | JT ARCH vs. Vienna Insurance Group | JT ARCH vs. Moneta Money Bank |
| UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Erste Group Bank | UNIQA Insurance vs. Moneta Money Bank | UNIQA Insurance vs. JT ARCH INVESTMENTS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |