Correlation Between UNIQA INSURANCE and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Costco Wholesale 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 Costco Wholesale 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 Costco Wholesale, you can compare the effects of market volatilities on UNIQA INSURANCE and Costco Wholesale 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 Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Costco Wholesale.
Diversification Opportunities for UNIQA INSURANCE and Costco Wholesale
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UNIQA and Costco is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Costco Wholesale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale 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 Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Costco Wholesale go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Costco Wholesale
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.28 times more return on investment than Costco Wholesale. However, UNIQA INSURANCE GR is 3.57 times less risky than Costco Wholesale. It trades about 0.73 of its potential returns per unit of risk. Costco Wholesale is currently generating about 0.07 per unit of risk. If you would invest 768.00 in UNIQA INSURANCE GR on October 24, 2024 and sell it today you would earn a total of 39.00 from holding UNIQA INSURANCE GR or generate 5.08% 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. Costco Wholesale
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Costco Wholesale |
UNIQA INSURANCE and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Costco Wholesale
The main advantage of trading using opposite UNIQA INSURANCE and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| UNIQA INSURANCE vs. China Communications Services | UNIQA INSURANCE vs. SEKISUI CHEMICAL | UNIQA INSURANCE vs. INTERSHOP Communications Aktiengesellschaft | UNIQA INSURANCE vs. Computershare Limited |
| Costco Wholesale vs. Solstad Offshore ASA | Costco Wholesale vs. US Physical Therapy | Costco Wholesale vs. Taiwan Semiconductor Manufacturing | Costco Wholesale vs. Bausch Health Companies |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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