Correlation Between UNIQA INSURANCE and China BlueChemical
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and China BlueChemical 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 China BlueChemical 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 China BlueChemical, you can compare the effects of market volatilities on UNIQA INSURANCE and China BlueChemical 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 China BlueChemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and China BlueChemical.
Diversification Opportunities for UNIQA INSURANCE and China BlueChemical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between UNIQA and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and China BlueChemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China BlueChemical 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 China BlueChemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China BlueChemical has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and China BlueChemical go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and China BlueChemical
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.42 times more return on investment than China BlueChemical. However, UNIQA INSURANCE GR is 2.36 times less risky than China BlueChemical. It trades about 0.18 of its potential returns per unit of risk. China BlueChemical is currently generating about 0.01 per unit of risk. If you would invest 731.00 in UNIQA INSURANCE GR on September 24, 2024 and sell it today you would earn a total of 30.00 from holding UNIQA INSURANCE GR or generate 4.1% 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. China BlueChemical
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| China BlueChemical |
UNIQA INSURANCE and China BlueChemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and China BlueChemical
The main advantage of trading using opposite UNIQA INSURANCE and China BlueChemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, China BlueChemical 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 China BlueChemical will offset losses from the drop in China BlueChemical's long position.| UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Microsoft |
| China BlueChemical vs. Salesforce | China BlueChemical vs. UNIQA INSURANCE GR | China BlueChemical vs. SBI Insurance Group | China BlueChemical vs. VIENNA INSURANCE GR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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