Correlation Between UNIQA INSURANCE and JAPAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and JAPAN AIRLINES 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 JAPAN AIRLINES 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 JAPAN AIRLINES, you can compare the effects of market volatilities on UNIQA INSURANCE and JAPAN AIRLINES 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 JAPAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and JAPAN AIRLINES.
Diversification Opportunities for UNIQA INSURANCE and JAPAN AIRLINES
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UNIQA and JAPAN is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and JAPAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN AIRLINES 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 JAPAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN AIRLINES has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and JAPAN AIRLINES go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and JAPAN AIRLINES
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.61 times more return on investment than JAPAN AIRLINES. However, UNIQA INSURANCE GR is 1.63 times less risky than JAPAN AIRLINES. It trades about 0.06 of its potential returns per unit of risk. JAPAN AIRLINES is currently generating about -0.02 per unit of risk. If you would invest 642.00 in UNIQA INSURANCE GR on October 31, 2024 and sell it today you would earn a total of 159.00 from holding UNIQA INSURANCE GR or generate 24.77% 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. JAPAN AIRLINES
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| JAPAN AIRLINES |
UNIQA INSURANCE and JAPAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and JAPAN AIRLINES
The main advantage of trading using opposite UNIQA INSURANCE and JAPAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, JAPAN AIRLINES 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 JAPAN AIRLINES will offset losses from the drop in JAPAN AIRLINES's long position.| UNIQA INSURANCE vs. Titan Machinery | UNIQA INSURANCE vs. Insurance Australia Group | UNIQA INSURANCE vs. REVO INSURANCE SPA | UNIQA INSURANCE vs. Hanison Construction Holdings |
| JAPAN AIRLINES vs. CENTURIA OFFICE REIT | JAPAN AIRLINES vs. Martin Marietta Materials | JAPAN AIRLINES vs. CVW CLEANTECH INC | JAPAN AIRLINES vs. Goodyear Tire Rubber |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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