Correlation Between UNIQA INSURANCE and HM HENMAUUNSPADR
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and HM HENMAUUNSPADR 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 HM HENMAUUNSPADR 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 HM HENMAUUNSPADR 15, you can compare the effects of market volatilities on UNIQA INSURANCE and HM HENMAUUNSPADR 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 HM HENMAUUNSPADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and HM HENMAUUNSPADR.
Diversification Opportunities for UNIQA INSURANCE and HM HENMAUUNSPADR
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and HMSA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and HM HENMAUUNSPADR 15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HM HENMAUUNSPADR 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 HM HENMAUUNSPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HM HENMAUUNSPADR has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and HM HENMAUUNSPADR go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and HM HENMAUUNSPADR
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.51 times more return on investment than HM HENMAUUNSPADR. However, UNIQA INSURANCE GR is 1.95 times less risky than HM HENMAUUNSPADR. It trades about 0.34 of its potential returns per unit of risk. HM HENMAUUNSPADR 15 is currently generating about -0.05 per unit of risk. If you would invest 731.00 in UNIQA INSURANCE GR on October 26, 2024 and sell it today you would earn a total of 87.00 from holding UNIQA INSURANCE GR or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. HM HENMAUUNSPADR 15
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| HM HENMAUUNSPADR |
UNIQA INSURANCE and HM HENMAUUNSPADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and HM HENMAUUNSPADR
The main advantage of trading using opposite UNIQA INSURANCE and HM HENMAUUNSPADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, HM HENMAUUNSPADR 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 HM HENMAUUNSPADR will offset losses from the drop in HM HENMAUUNSPADR's long position.| UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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