Correlation Between UNIQA INSURANCE and CVS Health
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and CVS Health 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 CVS Health 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 CVS Health, you can compare the effects of market volatilities on UNIQA INSURANCE and CVS Health 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 CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and CVS Health.
Diversification Opportunities for UNIQA INSURANCE and CVS Health
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and CVS is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and CVS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health 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 CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and CVS Health go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and CVS Health
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 6.01 times less return on investment than CVS Health. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 3.28 times less risky than CVS Health. It trades about 0.35 of its potential returns per unit of risk. CVS Health is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 4,223 in CVS Health on October 31, 2024 and sell it today you would earn a total of 1,268 from holding CVS Health or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. CVS Health
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| CVS Health |
UNIQA INSURANCE and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and CVS Health
The main advantage of trading using opposite UNIQA INSURANCE and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health's long position.| UNIQA INSURANCE vs. YATRA ONLINE DL 0001 | UNIQA INSURANCE vs. CHEMICAL INDUSTRIES | UNIQA INSURANCE vs. PTT Global Chemical | UNIQA INSURANCE vs. TIANDE CHEMICAL |
| CVS Health vs. DATANG INTL POW | CVS Health vs. Shenandoah Telecommunications | CVS Health vs. Datadog | CVS Health vs. Chengdu PUTIAN Telecommunications |
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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