Correlation Between FIREWEED METALS and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both FIREWEED METALS 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 FIREWEED METALS and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIREWEED METALS P and UNIQA INSURANCE GR, you can compare the effects of market volatilities on FIREWEED METALS 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 FIREWEED METALS with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIREWEED METALS and UNIQA INSURANCE.
Diversification Opportunities for FIREWEED METALS and UNIQA INSURANCE
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIREWEED and UNIQA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding FIREWEED METALS P 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 FIREWEED METALS 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 FIREWEED METALS P 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 FIREWEED METALS i.e., FIREWEED METALS and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between FIREWEED METALS and UNIQA INSURANCE
Assuming the 90 days horizon FIREWEED METALS P is expected to generate 3.33 times more return on investment than UNIQA INSURANCE. However, FIREWEED METALS is 3.33 times more volatile than UNIQA INSURANCE GR. It trades about 0.12 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.3 per unit of risk. If you would invest 94.00 in FIREWEED METALS P on November 2, 2024 and sell it today you would earn a total of 5.00 from holding FIREWEED METALS P or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIREWEED METALS P vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| FIREWEED METALS P |
| UNIQA INSURANCE GR |
FIREWEED METALS and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIREWEED METALS and UNIQA INSURANCE
The main advantage of trading using opposite FIREWEED METALS and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIREWEED METALS 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.| FIREWEED METALS vs. THRACE PLASTICS | FIREWEED METALS vs. Heidelberg Materials AG | FIREWEED METALS vs. Rayonier Advanced Materials | FIREWEED METALS vs. AEON STORES |
| UNIQA INSURANCE vs. Dairy Farm International | UNIQA INSURANCE vs. AUST AGRICULTURAL | UNIQA INSURANCE vs. Titan Machinery | UNIQA INSURANCE vs. Federal Agricultural Mortgage |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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