Correlation Between Pets At and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Pets At 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 Pets At and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pets at Home and UNIQA Insurance Group, you can compare the effects of market volatilities on Pets At 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 Pets At with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pets At and UNIQA Insurance.
Diversification Opportunities for Pets At and UNIQA Insurance
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pets and UNIQA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Pets at Home 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 Pets At 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 Pets at Home 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 Pets At i.e., Pets At and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Pets At and UNIQA Insurance
Assuming the 90 days trading horizon Pets at Home is expected to under-perform the UNIQA Insurance. In addition to that, Pets At is 1.52 times more volatile than UNIQA Insurance Group. It trades about -0.1 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.3 per unit of volatility. If you would invest 754.00 in UNIQA Insurance Group on October 18, 2024 and sell it today you would earn a total of 47.00 from holding UNIQA Insurance Group or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pets at Home vs. UNIQA Insurance Group
Performance |
| Timeline |
| Pets at Home |
| UNIQA Insurance Group |
Pets At and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pets At and UNIQA Insurance
The main advantage of trading using opposite Pets At and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pets At 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.| Pets At vs. Take Two Interactive Software | Pets At vs. Jacquet Metal Service | Pets At vs. Concurrent Technologies Plc | Pets At vs. Panther Metals PLC |
| UNIQA Insurance vs. Home Depot | UNIQA Insurance vs. Pets at Home | UNIQA Insurance vs. Datagroup SE | UNIQA Insurance vs. Supermarket Income REIT |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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