Correlation Between National Atomic and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both National Atomic 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 National Atomic and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Atomic Co and UNIQA Insurance Group, you can compare the effects of market volatilities on National Atomic 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 National Atomic with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Atomic and UNIQA Insurance.
Diversification Opportunities for National Atomic and UNIQA Insurance
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and UNIQA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding National Atomic Co 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 National Atomic 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 National Atomic Co 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 National Atomic i.e., National Atomic and UNIQA Insurance go up and down completely randomly.
Pair Corralation between National Atomic and UNIQA Insurance
Assuming the 90 days trading horizon National Atomic Co is expected to generate 1.48 times more return on investment than UNIQA Insurance. However, National Atomic is 1.48 times more volatile than UNIQA Insurance Group. It trades about 0.15 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 3,845 in National Atomic Co on August 29, 2024 and sell it today you would earn a total of 190.00 from holding National Atomic Co or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Atomic Co vs. UNIQA Insurance Group
Performance |
| Timeline |
| National Atomic |
| UNIQA Insurance Group |
National Atomic and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Atomic and UNIQA Insurance
The main advantage of trading using opposite National Atomic and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Atomic 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.| National Atomic vs. Zoom Video Communications | National Atomic vs. Lendinvest PLC | National Atomic vs. Neometals | National Atomic vs. Coor Service Management |
| UNIQA Insurance vs. Lendinvest PLC | UNIQA Insurance vs. Neometals | UNIQA Insurance vs. Coor Service Management | UNIQA Insurance vs. Albion Technology General |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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