Correlation Between Morgan Advanced and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Morgan Advanced 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 Morgan Advanced and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgan Advanced Materials and UNIQA Insurance Group, you can compare the effects of market volatilities on Morgan Advanced 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 Morgan Advanced with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgan Advanced and UNIQA Insurance.
Diversification Opportunities for Morgan Advanced and UNIQA Insurance
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Morgan and UNIQA is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Morgan Advanced Materials 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 Morgan Advanced 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 Morgan Advanced Materials 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 Morgan Advanced i.e., Morgan Advanced and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Morgan Advanced and UNIQA Insurance
Assuming the 90 days trading horizon Morgan Advanced Materials is expected to under-perform the UNIQA Insurance. In addition to that, Morgan Advanced is 1.99 times more volatile than UNIQA Insurance Group. It trades about 0.0 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.05 per unit of volatility. If you would invest 623.00 in UNIQA Insurance Group on August 26, 2024 and sell it today you would earn a total of 114.00 from holding UNIQA Insurance Group or generate 18.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.6% |
| Values | Daily Returns |
Morgan Advanced Materials vs. UNIQA Insurance Group
Performance |
| Timeline |
| Morgan Advanced Materials |
| UNIQA Insurance Group |
Morgan Advanced and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgan Advanced and UNIQA Insurance
The main advantage of trading using opposite Morgan Advanced and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgan Advanced 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.| Morgan Advanced vs. Samsung Electronics Co | Morgan Advanced vs. Samsung Electronics Co | Morgan Advanced vs. Hyundai Motor | Morgan Advanced vs. Toyota Motor Corp |
| UNIQA Insurance vs. Samsung Electronics Co | UNIQA Insurance vs. Samsung Electronics Co | UNIQA Insurance vs. Hyundai Motor | UNIQA Insurance vs. Toyota Motor Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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