Correlation Between UNIQA INSURANCE and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and CANON MARKETING 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 CANON MARKETING 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 CANON MARKETING JP, you can compare the effects of market volatilities on UNIQA INSURANCE and CANON MARKETING 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 CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and CANON MARKETING.
Diversification Opportunities for UNIQA INSURANCE and CANON MARKETING
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and CANON is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and CANON MARKETING JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANON MARKETING JP 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 CANON MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANON MARKETING JP has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and CANON MARKETING go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and CANON MARKETING
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.48 times more return on investment than CANON MARKETING. However, UNIQA INSURANCE GR is 2.06 times less risky than CANON MARKETING. It trades about 0.62 of its potential returns per unit of risk. CANON MARKETING JP is currently generating about -0.15 per unit of risk. If you would invest 742.00 in UNIQA INSURANCE GR on October 14, 2024 and sell it today you would earn a total of 48.00 from holding UNIQA INSURANCE GR or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. CANON MARKETING JP
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| CANON MARKETING JP |
UNIQA INSURANCE and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and CANON MARKETING
The main advantage of trading using opposite UNIQA INSURANCE and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, CANON MARKETING 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 CANON MARKETING will offset losses from the drop in CANON MARKETING'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 |
| CANON MARKETING vs. UNIQA INSURANCE GR | CANON MARKETING vs. BE Semiconductor Industries | CANON MARKETING vs. Semiconductor Manufacturing International | CANON MARKETING vs. QBE Insurance 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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