Correlation Between Prabos Plus and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Prabos Plus 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 Prabos Plus and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prabos Plus as and UNIQA Insurance Group, you can compare the effects of market volatilities on Prabos Plus 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 Prabos Plus with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prabos Plus and UNIQA Insurance.
Diversification Opportunities for Prabos Plus and UNIQA Insurance
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prabos and UNIQA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Prabos Plus as 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 Prabos Plus 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 Prabos Plus as 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 Prabos Plus i.e., Prabos Plus and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Prabos Plus and UNIQA Insurance
Assuming the 90 days trading horizon Prabos Plus as is expected to generate 1.97 times more return on investment than UNIQA Insurance. However, Prabos Plus is 1.97 times more volatile than UNIQA Insurance Group. It trades about 0.04 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.01 per unit of risk. If you would invest 21,000 in Prabos Plus as on August 30, 2024 and sell it today you would earn a total of 5,800 from holding Prabos Plus as or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prabos Plus as vs. UNIQA Insurance Group
Performance |
| Timeline |
| Prabos Plus as |
| UNIQA Insurance Group |
Prabos Plus and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prabos Plus and UNIQA Insurance
The main advantage of trading using opposite Prabos Plus and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prabos Plus 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.| Prabos Plus vs. JT ARCH INVESTMENTS | Prabos Plus vs. Raiffeisen Bank International | Prabos Plus vs. Vienna Insurance Group | Prabos Plus vs. Komercni Banka AS |
| UNIQA Insurance vs. Cez AS | UNIQA Insurance vs. Kofola CeskoSlovensko as | UNIQA Insurance vs. MT 1997 AS | UNIQA Insurance vs. HARDWARIO as |
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.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |