Correlation Between UNIQA INSURANCE and DFDS AS
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and DFDS AS 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 UNIQA INSURANCE and DFDS AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIQA INSURANCE GR and DFDS AS, you can compare the effects of market volatilities on UNIQA INSURANCE and DFDS AS 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 UNIQA INSURANCE with a short position of DFDS AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and DFDS AS.
Diversification Opportunities for UNIQA INSURANCE and DFDS AS
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and DFDS is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and DFDS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFDS AS and UNIQA INSURANCE 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 UNIQA INSURANCE GR are associated (or correlated) with DFDS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFDS AS has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and DFDS AS go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and DFDS AS
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.15 times more return on investment than DFDS AS. However, UNIQA INSURANCE GR is 6.6 times less risky than DFDS AS. It trades about 0.31 of its potential returns per unit of risk. DFDS AS is currently generating about -0.2 per unit of risk. If you would invest 773.00 in UNIQA INSURANCE GR on November 3, 2024 and sell it today you would earn a total of 38.00 from holding UNIQA INSURANCE GR or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. DFDS AS
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| DFDS AS |
UNIQA INSURANCE and DFDS AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and DFDS AS
The main advantage of trading using opposite UNIQA INSURANCE and DFDS AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, DFDS AS 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 DFDS AS will offset losses from the drop in DFDS AS's long position.| UNIQA INSURANCE vs. Planet Fitness | UNIQA INSURANCE vs. GungHo Online Entertainment | UNIQA INSURANCE vs. YATRA ONLINE DL 0001 | UNIQA INSURANCE vs. 24SEVENOFFICE GROUP AB |
| DFDS AS vs. Entravision Communications | DFDS AS vs. Telecom Argentina SA | DFDS AS vs. Broadcom | DFDS AS vs. Highlight Communications AG |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |