Correlation Between UNIQA INSURANCE and ALEFARM BREWING
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and ALEFARM BREWING 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 ALEFARM BREWING 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 ALEFARM BREWING DK 05, you can compare the effects of market volatilities on UNIQA INSURANCE and ALEFARM BREWING 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 ALEFARM BREWING. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and ALEFARM BREWING.
Diversification Opportunities for UNIQA INSURANCE and ALEFARM BREWING
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and ALEFARM is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and ALEFARM BREWING DK 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEFARM BREWING DK 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 ALEFARM BREWING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEFARM BREWING DK has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and ALEFARM BREWING go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and ALEFARM BREWING
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 1.17 times less return on investment than ALEFARM BREWING. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 6.86 times less risky than ALEFARM BREWING. It trades about 0.62 of its potential returns per unit of risk. ALEFARM BREWING DK 05 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 16.00 in ALEFARM BREWING DK 05 on October 14, 2024 and sell it today you would earn a total of 1.00 from holding ALEFARM BREWING DK 05 or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. ALEFARM BREWING DK 05
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| ALEFARM BREWING DK |
UNIQA INSURANCE and ALEFARM BREWING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and ALEFARM BREWING
The main advantage of trading using opposite UNIQA INSURANCE and ALEFARM BREWING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, ALEFARM BREWING 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 ALEFARM BREWING will offset losses from the drop in ALEFARM BREWING's long position.| UNIQA INSURANCE vs. UNITED RENTALS | UNIQA INSURANCE vs. FUYO GENERAL LEASE | UNIQA INSURANCE vs. Fortescue Metals Group | UNIQA INSURANCE vs. Air Lease |
| ALEFARM BREWING vs. DALATA HOTEL | ALEFARM BREWING vs. MHP Hotel AG | ALEFARM BREWING vs. UNIQA INSURANCE GR | ALEFARM BREWING vs. InterContinental Hotels Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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