Correlation Between Medical Properties and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Medical Properties 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 Medical Properties and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Medical Properties 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 Medical Properties with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and UNIQA INSURANCE.
Diversification Opportunities for Medical Properties and UNIQA INSURANCE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Medical and UNIQA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust 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 Medical Properties 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 Medical Properties Trust 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 Medical Properties i.e., Medical Properties and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Medical Properties and UNIQA INSURANCE
Assuming the 90 days trading horizon Medical Properties Trust is expected to generate 7.51 times more return on investment than UNIQA INSURANCE. However, Medical Properties is 7.51 times more volatile than UNIQA INSURANCE GR. It trades about 0.37 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.65 per unit of risk. If you would invest 352.00 in Medical Properties Trust on October 30, 2024 and sell it today you would earn a total of 91.00 from holding Medical Properties Trust or generate 25.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Medical Properties Trust vs. UNIQA INSURANCE GR
Performance |
Timeline |
Medical Properties Trust |
UNIQA INSURANCE GR |
Medical Properties and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Medical Properties and UNIQA INSURANCE
The main advantage of trading using opposite Medical Properties and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties 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.Medical Properties vs. Apple Inc | Medical Properties vs. Apple Inc | Medical Properties vs. Apple Inc | Medical Properties vs. Apple Inc |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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