Correlation Between UNIQA INSURANCE and Nippon Light
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Nippon Light 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 Nippon Light 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 Nippon Light Metal, you can compare the effects of market volatilities on UNIQA INSURANCE and Nippon Light 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 Nippon Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Nippon Light.
Diversification Opportunities for UNIQA INSURANCE and Nippon Light
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIQA and Nippon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Nippon Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Light Metal 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 Nippon Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Light Metal has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Nippon Light go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Nippon Light
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.29 times more return on investment than Nippon Light. However, UNIQA INSURANCE GR is 3.47 times less risky than Nippon Light. It trades about 0.65 of its potential returns per unit of risk. Nippon Light Metal is currently generating about -0.01 per unit of risk. If you would invest 768.00 in UNIQA INSURANCE GR on October 30, 2024 and sell it today you would earn a total of 45.00 from holding UNIQA INSURANCE GR or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Nippon Light Metal
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Nippon Light Metal |
UNIQA INSURANCE and Nippon Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Nippon Light
The main advantage of trading using opposite UNIQA INSURANCE and Nippon Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Nippon Light 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 Nippon Light will offset losses from the drop in Nippon Light's long position.| UNIQA INSURANCE vs. Adtalem Global Education | UNIQA INSURANCE vs. PLAY2CHILL SA ZY | UNIQA INSURANCE vs. Columbia Sportswear | UNIQA INSURANCE vs. ETFS Coffee ETC |
| Nippon Light vs. PICKN PAY STORES | Nippon Light vs. Apollo Medical Holdings | Nippon Light vs. SPARTAN STORES | Nippon Light vs. Peijia Medical Limited |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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