Correlation Between UNIQA INSURANCE and DAIDO METAL
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and DAIDO METAL 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 DAIDO METAL 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 DAIDO METAL TD, you can compare the effects of market volatilities on UNIQA INSURANCE and DAIDO METAL 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 DAIDO METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and DAIDO METAL.
Diversification Opportunities for UNIQA INSURANCE and DAIDO METAL
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and DAIDO is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and DAIDO METAL TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAIDO METAL TD 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 DAIDO METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAIDO METAL TD has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and DAIDO METAL go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and DAIDO METAL
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.4 times more return on investment than DAIDO METAL. However, UNIQA INSURANCE GR is 2.48 times less risky than DAIDO METAL. It trades about 0.65 of its potential returns per unit of risk. DAIDO METAL TD is currently generating about -0.15 per unit of risk. If you would invest 768.00 in UNIQA INSURANCE GR on October 30, 2024 and sell it today you would earn a total of 45.00 from holding UNIQA INSURANCE GR or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. DAIDO METAL TD
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| DAIDO METAL TD |
UNIQA INSURANCE and DAIDO METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and DAIDO METAL
The main advantage of trading using opposite UNIQA INSURANCE and DAIDO METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, DAIDO METAL 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 DAIDO METAL will offset losses from the drop in DAIDO METAL's long position.| UNIQA INSURANCE vs. Adtalem Global Education | UNIQA INSURANCE vs. PLAY2CHILL SA ZY | UNIQA INSURANCE vs. Columbia Sportswear | UNIQA INSURANCE vs. ETFS Coffee ETC |
| DAIDO METAL vs. CarsalesCom | DAIDO METAL vs. SALESFORCE INC CDR | DAIDO METAL vs. CHRYSALIS INVESTMENTS LTD | DAIDO METAL vs. Carsales |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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