Correlation Between IShares Physical and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both IShares Physical 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 IShares Physical and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Physical Silver and UNIQA Insurance Group, you can compare the effects of market volatilities on IShares Physical 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 IShares Physical with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Physical and UNIQA Insurance.
Diversification Opportunities for IShares Physical and UNIQA Insurance
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and UNIQA is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding iShares Physical Silver 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 IShares Physical 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 iShares Physical Silver 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 IShares Physical i.e., IShares Physical and UNIQA Insurance go up and down completely randomly.
Pair Corralation between IShares Physical and UNIQA Insurance
Assuming the 90 days trading horizon iShares Physical Silver is expected to under-perform the UNIQA Insurance. In addition to that, IShares Physical is 1.59 times more volatile than UNIQA Insurance Group. It trades about -0.04 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.18 per unit of volatility. If you would invest 734.00 in UNIQA Insurance Group on October 24, 2024 and sell it today you would earn a total of 75.00 from holding UNIQA Insurance Group or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Physical Silver vs. UNIQA Insurance Group
Performance |
| Timeline |
| iShares Physical Silver |
| UNIQA Insurance Group |
IShares Physical and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Physical and UNIQA Insurance
The main advantage of trading using opposite IShares Physical and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Physical 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.| IShares Physical vs. Cembra Money Bank | IShares Physical vs. Delta Air Lines | IShares Physical vs. Commerzbank AG | IShares Physical vs. TBC Bank Group |
| UNIQA Insurance vs. Bisichi Mining PLC | UNIQA Insurance vs. Lundin Mining Corp | UNIQA Insurance vs. Vitec Software Group | UNIQA Insurance vs. GoldMining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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