Correlation Between OPERA SOFTWARE and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both OPERA SOFTWARE 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 OPERA SOFTWARE and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPERA SOFTWARE and UNIQA INSURANCE GR, you can compare the effects of market volatilities on OPERA SOFTWARE 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 OPERA SOFTWARE with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPERA SOFTWARE and UNIQA INSURANCE.
Diversification Opportunities for OPERA SOFTWARE and UNIQA INSURANCE
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OPERA and UNIQA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE i.e., OPERA SOFTWARE and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between OPERA SOFTWARE and UNIQA INSURANCE
Assuming the 90 days trading horizon OPERA SOFTWARE is expected to generate 5.63 times less return on investment than UNIQA INSURANCE. In addition to that, OPERA SOFTWARE is 2.84 times more volatile than UNIQA INSURANCE GR. It trades about 0.0 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.06 per unit of volatility. If you would invest 666.00 in UNIQA INSURANCE GR on October 26, 2024 and sell it today you would earn a total of 153.00 from holding UNIQA INSURANCE GR or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPERA SOFTWARE vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| OPERA SOFTWARE |
| UNIQA INSURANCE GR |
OPERA SOFTWARE and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPERA SOFTWARE and UNIQA INSURANCE
The main advantage of trading using opposite OPERA SOFTWARE and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPERA SOFTWARE 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.| OPERA SOFTWARE vs. MHP Hotel AG | OPERA SOFTWARE vs. DALATA HOTEL | OPERA SOFTWARE vs. Perseus Mining Limited | OPERA SOFTWARE vs. ADRIATIC METALS LS 013355 |
| UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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