Correlation Between ETFS Coffee and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both ETFS Coffee 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 ETFS Coffee and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS Coffee ETC and UNIQA INSURANCE GR, you can compare the effects of market volatilities on ETFS Coffee 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 ETFS Coffee with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and UNIQA INSURANCE.
Diversification Opportunities for ETFS Coffee and UNIQA INSURANCE
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ETFS and UNIQA is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Coffee ETC 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 ETFS Coffee 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 ETFS Coffee ETC 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 ETFS Coffee i.e., ETFS Coffee and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between ETFS Coffee and UNIQA INSURANCE
Assuming the 90 days trading horizon ETFS Coffee ETC is expected to generate 3.21 times more return on investment than UNIQA INSURANCE. However, ETFS Coffee is 3.21 times more volatile than UNIQA INSURANCE GR. It trades about 0.34 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.26 per unit of risk. If you would invest 5,250 in ETFS Coffee ETC on November 7, 2024 and sell it today you would earn a total of 859.00 from holding ETFS Coffee ETC or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ETFS Coffee ETC vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| ETFS Coffee ETC |
| UNIQA INSURANCE GR |
ETFS Coffee and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Coffee and UNIQA INSURANCE
The main advantage of trading using opposite ETFS Coffee and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Coffee 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.| ETFS Coffee vs. Fukuyama Transporting Co | ETFS Coffee vs. ANTA SPORTS PRODUCT | ETFS Coffee vs. TITANIUM TRANSPORTGROUP | ETFS Coffee vs. COLUMBIA SPORTSWEAR |
| UNIQA INSURANCE vs. CVR Medical Corp | UNIQA INSURANCE vs. Inspire Medical Systems | UNIQA INSURANCE vs. Canon Marketing Japan | UNIQA INSURANCE vs. IMAGIN MEDICAL INC |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |