Correlation Between Reinsurance Group and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Reinsurance Group 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 Reinsurance Group and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reinsurance Group of and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Reinsurance Group 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 Reinsurance Group with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinsurance Group and UNIQA INSURANCE.
Diversification Opportunities for Reinsurance Group and UNIQA INSURANCE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Reinsurance and UNIQA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Reinsurance Group of 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 Reinsurance Group 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 Reinsurance Group of 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 Reinsurance Group i.e., Reinsurance Group and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Reinsurance Group and UNIQA INSURANCE
Assuming the 90 days trading horizon Reinsurance Group of is expected to generate 2.15 times more return on investment than UNIQA INSURANCE. However, Reinsurance Group is 2.15 times more volatile than UNIQA INSURANCE GR. It trades about 0.07 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.05 per unit of risk. If you would invest 12,353 in Reinsurance Group of on October 11, 2024 and sell it today you would earn a total of 8,447 from holding Reinsurance Group of or generate 68.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Reinsurance Group of vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| Reinsurance Group |
| UNIQA INSURANCE GR |
Reinsurance Group and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reinsurance Group and UNIQA INSURANCE
The main advantage of trading using opposite Reinsurance Group and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reinsurance Group 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.| Reinsurance Group vs. CAIRN HOMES EO | Reinsurance Group vs. JAPAN AIRLINES | Reinsurance Group vs. Neinor Homes SA | Reinsurance Group vs. Focus Home Interactive |
| UNIQA INSURANCE vs. MINCO SILVER | UNIQA INSURANCE vs. Carnegie Clean Energy | UNIQA INSURANCE vs. Fortescue Metals Group | UNIQA INSURANCE vs. Forsys Metals 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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