Correlation Between UNIQA INSURANCE and Apple
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on UNIQA INSURANCE and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Apple.
Diversification Opportunities for UNIQA INSURANCE and Apple
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UNIQA and Apple is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Apple go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Apple
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 2.24 times less return on investment than Apple. In addition to that, UNIQA INSURANCE is 1.45 times more volatile than Apple Inc. It trades about 0.22 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.7 per unit of volatility. If you would invest 21,890 in Apple Inc on September 25, 2024 and sell it today you would earn a total of 2,610 from holding Apple Inc or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Apple Inc
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Apple Inc |
UNIQA INSURANCE and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Apple
The main advantage of trading using opposite UNIQA INSURANCE and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Microsoft | UNIQA INSURANCE vs. Microsoft |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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