Correlation Between UNIQA INSURANCE and Capgemini
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Capgemini 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 Capgemini 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 Capgemini SE, you can compare the effects of market volatilities on UNIQA INSURANCE and Capgemini 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 Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Capgemini.
Diversification Opportunities for UNIQA INSURANCE and Capgemini
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between UNIQA and Capgemini is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE 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 Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Capgemini go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Capgemini
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.47 times more return on investment than Capgemini. However, UNIQA INSURANCE GR is 2.12 times less risky than Capgemini. It trades about 0.07 of its potential returns per unit of risk. Capgemini SE is currently generating about -0.01 per unit of risk. If you would invest 701.00 in UNIQA INSURANCE GR on November 5, 2024 and sell it today you would earn a total of 110.00 from holding UNIQA INSURANCE GR or generate 15.69% 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. Capgemini SE
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Capgemini SE |
UNIQA INSURANCE and Capgemini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Capgemini
The main advantage of trading using opposite UNIQA INSURANCE and Capgemini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Capgemini 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 Capgemini will offset losses from the drop in Capgemini's long position.| UNIQA INSURANCE vs. ARDAGH METAL PACDL 0001 | UNIQA INSURANCE vs. United Airlines Holdings | UNIQA INSURANCE vs. MCEWEN MINING INC | UNIQA INSURANCE vs. Southwest Airlines Co |
| Capgemini vs. QUEEN S ROAD | Capgemini vs. CENTURIA OFFICE REIT | Capgemini vs. SAFEROADS HLDGS | Capgemini vs. TEXAS ROADHOUSE |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |