Correlation Between UNIQA INSURANCE and KIMBALL ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS, you can compare the effects of market volatilities on UNIQA INSURANCE and KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and KIMBALL ELECTRONICS.
Diversification Opportunities for UNIQA INSURANCE and KIMBALL ELECTRONICS
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIQA and KIMBALL is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and KIMBALL ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBALL ELECTRONICS has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and KIMBALL ELECTRONICS go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and KIMBALL ELECTRONICS
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.55 times more return on investment than KIMBALL ELECTRONICS. However, UNIQA INSURANCE GR is 1.81 times less risky than KIMBALL ELECTRONICS. It trades about 0.16 of its potential returns per unit of risk. KIMBALL ELECTRONICS is currently generating about -0.11 per unit of risk. If you would invest 782.00 in UNIQA INSURANCE GR on November 6, 2024 and sell it today you would earn a total of 19.00 from holding UNIQA INSURANCE GR or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. KIMBALL ELECTRONICS
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| KIMBALL ELECTRONICS |
UNIQA INSURANCE and KIMBALL ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and KIMBALL ELECTRONICS
The main advantage of trading using opposite UNIQA INSURANCE and KIMBALL ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, KIMBALL ELECTRONICS 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 KIMBALL ELECTRONICS will offset losses from the drop in KIMBALL ELECTRONICS's long position.| UNIQA INSURANCE vs. CAREER EDUCATION | UNIQA INSURANCE vs. Mitsui Chemicals | UNIQA INSURANCE vs. COLUMBIA SPORTSWEAR | UNIQA INSURANCE vs. BII Railway Transportation |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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