Correlation Between UNIQA INSURANCE and China Reinsurance
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and China Reinsurance 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 China Reinsurance 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 China Reinsurance, you can compare the effects of market volatilities on UNIQA INSURANCE and China Reinsurance 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 China Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and China Reinsurance.
Diversification Opportunities for UNIQA INSURANCE and China Reinsurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and China Reinsurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reinsurance 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 China Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reinsurance has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and China Reinsurance go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and China Reinsurance
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.12 times more return on investment than China Reinsurance. However, UNIQA INSURANCE GR is 8.03 times less risky than China Reinsurance. It trades about 0.46 of its potential returns per unit of risk. China Reinsurance is currently generating about 0.05 per unit of risk. If you would invest 720.00 in UNIQA INSURANCE GR on October 30, 2024 and sell it today you would earn a total of 93.00 from holding UNIQA INSURANCE GR or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. China Reinsurance
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| China Reinsurance |
UNIQA INSURANCE and China Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and China Reinsurance
The main advantage of trading using opposite UNIQA INSURANCE and China Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, China Reinsurance 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 China Reinsurance will offset losses from the drop in China Reinsurance'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 |
| China Reinsurance vs. Swiss Re AG | China Reinsurance vs. Reinsurance Group of | China Reinsurance vs. Superior Plus Corp | China Reinsurance vs. Origin Agritech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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