Correlation Between Stag Industrial and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Stag Industrial 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 Stag Industrial and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Stag Industrial 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 Stag Industrial with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and UNIQA INSURANCE.
Diversification Opportunities for Stag Industrial and UNIQA INSURANCE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stag and UNIQA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial 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 Stag Industrial 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 Stag Industrial 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 Stag Industrial i.e., Stag Industrial and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Stag Industrial and UNIQA INSURANCE
Assuming the 90 days trading horizon Stag Industrial is expected to generate 1.49 times less return on investment than UNIQA INSURANCE. In addition to that, Stag Industrial is 1.47 times more volatile than UNIQA INSURANCE GR. It trades about 0.14 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.3 per unit of volatility. If you would invest 773.00 in UNIQA INSURANCE GR on November 2, 2024 and sell it today you would earn a total of 34.00 from holding UNIQA INSURANCE GR or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stag Industrial vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| Stag Industrial |
| UNIQA INSURANCE GR |
Stag Industrial and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and UNIQA INSURANCE
The main advantage of trading using opposite Stag Industrial and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial 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.| Stag Industrial vs. FAST RETAIL ADR | Stag Industrial vs. CARSALESCOM | Stag Industrial vs. Gol Intelligent Airlines | Stag Industrial vs. CarsalesCom |
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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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