Correlation Between UNIQA INSURANCE and CHIBA BANK
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and CHIBA BANK 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 CHIBA BANK 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 CHIBA BANK, you can compare the effects of market volatilities on UNIQA INSURANCE and CHIBA BANK 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 CHIBA BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and CHIBA BANK.
Diversification Opportunities for UNIQA INSURANCE and CHIBA BANK
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between UNIQA and CHIBA is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and CHIBA BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIBA BANK 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 CHIBA BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIBA BANK has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and CHIBA BANK go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and CHIBA BANK
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.3 times more return on investment than CHIBA BANK. However, UNIQA INSURANCE GR is 3.32 times less risky than CHIBA BANK. It trades about 0.86 of its potential returns per unit of risk. CHIBA BANK is currently generating about 0.17 per unit of risk. If you would invest 768.00 in UNIQA INSURANCE GR on October 29, 2024 and sell it today you would earn a total of 51.00 from holding UNIQA INSURANCE GR or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. CHIBA BANK
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| CHIBA BANK |
UNIQA INSURANCE and CHIBA BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and CHIBA BANK
The main advantage of trading using opposite UNIQA INSURANCE and CHIBA BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, CHIBA BANK 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 CHIBA BANK will offset losses from the drop in CHIBA BANK's long position.| UNIQA INSURANCE vs. Medical Properties Trust | UNIQA INSURANCE vs. GAZTRTECHNIUADR15EO01 | UNIQA INSURANCE vs. ONWARD MEDICAL BV | UNIQA INSURANCE vs. AAC TECHNOLOGHLDGADR |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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