Correlation Between UNIQA INSURANCE and East Japan
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and East Japan 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 East Japan 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 East Japan Railway, you can compare the effects of market volatilities on UNIQA INSURANCE and East Japan 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 East Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and East Japan.
Diversification Opportunities for UNIQA INSURANCE and East Japan
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and East is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and East Japan Railway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Japan Railway 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 East Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Japan Railway has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and East Japan go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and East Japan
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.43 times more return on investment than East Japan. However, UNIQA INSURANCE GR is 2.32 times less risky than East Japan. It trades about 0.06 of its potential returns per unit of risk. East Japan Railway is currently generating about 0.01 per unit of risk. If you would invest 681.00 in UNIQA INSURANCE GR on November 8, 2024 and sell it today you would earn a total of 114.00 from holding UNIQA INSURANCE GR or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. East Japan Railway
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| East Japan Railway |
UNIQA INSURANCE and East Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and East Japan
The main advantage of trading using opposite UNIQA INSURANCE and East Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, East Japan 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 East Japan will offset losses from the drop in East Japan's long position.| UNIQA INSURANCE vs. SIEM OFFSHORE NEW | UNIQA INSURANCE vs. MOLSON RS BEVERAGE | UNIQA INSURANCE vs. Sabre Insurance Group | UNIQA INSURANCE vs. PEPTONIC MEDICAL |
| East Japan vs. UPDATE SOFTWARE | East Japan vs. USU Software AG | East Japan vs. GBS Software AG | East Japan vs. Transport International Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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