Correlation Between UNIQA INSURANCE and FLOW TRADERS
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and FLOW TRADERS 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 FLOW TRADERS 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 FLOW TRADERS LTD, you can compare the effects of market volatilities on UNIQA INSURANCE and FLOW TRADERS 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 FLOW TRADERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and FLOW TRADERS.
Diversification Opportunities for UNIQA INSURANCE and FLOW TRADERS
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UNIQA and FLOW is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and FLOW TRADERS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLOW TRADERS LTD 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 FLOW TRADERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLOW TRADERS LTD has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and FLOW TRADERS go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and FLOW TRADERS
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 2.21 times less return on investment than FLOW TRADERS. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 3.16 times less risky than FLOW TRADERS. It trades about 0.31 of its potential returns per unit of risk. FLOW TRADERS LTD is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,152 in FLOW TRADERS LTD on November 3, 2024 and sell it today you would earn a total of 232.00 from holding FLOW TRADERS LTD or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. FLOW TRADERS LTD
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| FLOW TRADERS LTD |
UNIQA INSURANCE and FLOW TRADERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and FLOW TRADERS
The main advantage of trading using opposite UNIQA INSURANCE and FLOW TRADERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, FLOW TRADERS 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 FLOW TRADERS will offset losses from the drop in FLOW TRADERS's long position.| UNIQA INSURANCE vs. Planet Fitness | UNIQA INSURANCE vs. GungHo Online Entertainment | UNIQA INSURANCE vs. YATRA ONLINE DL 0001 | UNIQA INSURANCE vs. 24SEVENOFFICE GROUP AB |
| FLOW TRADERS vs. Tencent Music Entertainment | FLOW TRADERS vs. LPKF Laser Electronics | FLOW TRADERS vs. Nanjing Panda Electronics | FLOW TRADERS vs. UMC Electronics Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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