Correlation Between Monks Investment and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Monks Investment 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 Monks Investment and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monks Investment Trust and UNIQA Insurance Group, you can compare the effects of market volatilities on Monks Investment 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 Monks Investment with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monks Investment and UNIQA Insurance.
Diversification Opportunities for Monks Investment and UNIQA Insurance
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monks and UNIQA is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Monks Investment Trust 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 Monks Investment 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 Monks Investment 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 Group has no effect on the direction of Monks Investment i.e., Monks Investment and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Monks Investment and UNIQA Insurance
Assuming the 90 days trading horizon Monks Investment Trust is expected to generate 1.36 times more return on investment than UNIQA Insurance. However, Monks Investment is 1.36 times more volatile than UNIQA Insurance Group. It trades about 0.05 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.05 per unit of risk. If you would invest 99,994 in Monks Investment Trust on August 26, 2024 and sell it today you would earn a total of 26,406 from holding Monks Investment Trust or generate 26.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.6% |
| Values | Daily Returns |
Monks Investment Trust vs. UNIQA Insurance Group
Performance |
| Timeline |
| Monks Investment Trust |
| UNIQA Insurance Group |
Monks Investment and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monks Investment and UNIQA Insurance
The main advantage of trading using opposite Monks Investment and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monks Investment 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.| Monks Investment vs. Catalyst Media Group | Monks Investment vs. Oncimmune Holdings plc | Monks Investment vs. Invesco Health Care | Monks Investment vs. Coor Service Management |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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