Correlation Between Samsung Electronics and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and UNIQA Insurance Group, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and UNIQA Insurance.
Diversification Opportunities for Samsung Electronics and UNIQA Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Samsung and UNIQA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co 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 Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Samsung Electronics and UNIQA Insurance
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the UNIQA Insurance. In addition to that, Samsung Electronics is 2.73 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 -0.04 per unit of volatility. If you would invest 741.00 in UNIQA Insurance Group on August 29, 2024 and sell it today you would lose (12.00) from holding UNIQA Insurance Group or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. UNIQA Insurance Group
Performance |
| Timeline |
| Samsung Electronics |
| UNIQA Insurance Group |
Samsung Electronics and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and UNIQA Insurance
The main advantage of trading using opposite Samsung Electronics and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. Ondine Biomedical | Samsung Electronics vs. Europa Metals | Samsung Electronics vs. Lendinvest PLC | Samsung Electronics vs. Neometals |
| UNIQA Insurance vs. Lendinvest PLC | UNIQA Insurance vs. Neometals | UNIQA Insurance vs. Coor Service Management | UNIQA Insurance vs. Albion Technology General |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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