Correlation Between SEKISUI CHEMICAL and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both SEKISUI CHEMICAL 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 SEKISUI CHEMICAL and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEKISUI CHEMICAL and UNIQA INSURANCE GR, you can compare the effects of market volatilities on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEKISUI CHEMICAL and UNIQA INSURANCE.
Diversification Opportunities for SEKISUI CHEMICAL and UNIQA INSURANCE
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SEKISUI and UNIQA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL i.e., SEKISUI CHEMICAL and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between SEKISUI CHEMICAL and UNIQA INSURANCE
Assuming the 90 days trading horizon SEKISUI CHEMICAL is expected to generate 2.06 times more return on investment than UNIQA INSURANCE. However, SEKISUI CHEMICAL is 2.06 times more volatile than UNIQA INSURANCE GR. It trades about 0.13 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.18 per unit of risk. If you would invest 1,290 in SEKISUI CHEMICAL on October 24, 2024 and sell it today you would earn a total of 220.00 from holding SEKISUI CHEMICAL or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEKISUI CHEMICAL vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| SEKISUI CHEMICAL |
| UNIQA INSURANCE GR |
SEKISUI CHEMICAL and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEKISUI CHEMICAL and UNIQA INSURANCE
The main advantage of trading using opposite SEKISUI CHEMICAL and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEKISUI CHEMICAL 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.| SEKISUI CHEMICAL vs. Gladstone Investment | SEKISUI CHEMICAL vs. Genco Shipping Trading | SEKISUI CHEMICAL vs. MidCap Financial Investment | SEKISUI CHEMICAL vs. Scottish Mortgage Investment |
| UNIQA INSURANCE vs. China Communications Services | UNIQA INSURANCE vs. SEKISUI CHEMICAL | UNIQA INSURANCE vs. INTERSHOP Communications Aktiengesellschaft | UNIQA INSURANCE vs. Computershare Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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