Correlation Between UNIQA INSURANCE and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Reinsurance Group 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 Reinsurance Group 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 Reinsurance Group of, you can compare the effects of market volatilities on UNIQA INSURANCE and Reinsurance Group 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 Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Reinsurance Group.
Diversification Opportunities for UNIQA INSURANCE and Reinsurance Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Reinsurance is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group 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 Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Reinsurance Group go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Reinsurance Group
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.66 times more return on investment than Reinsurance Group. However, UNIQA INSURANCE GR is 1.5 times less risky than Reinsurance Group. It trades about 0.2 of its potential returns per unit of risk. Reinsurance Group of is currently generating about 0.01 per unit of risk. If you would invest 719.00 in UNIQA INSURANCE GR on October 11, 2024 and sell it today you would earn a total of 65.00 from holding UNIQA INSURANCE GR or generate 9.04% 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. Reinsurance Group of
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Reinsurance Group |
UNIQA INSURANCE and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Reinsurance Group
The main advantage of trading using opposite UNIQA INSURANCE and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| UNIQA INSURANCE vs. MINCO SILVER | UNIQA INSURANCE vs. Carnegie Clean Energy | UNIQA INSURANCE vs. Fortescue Metals Group | UNIQA INSURANCE vs. Forsys Metals Corp |
| Reinsurance Group vs. CAIRN HOMES EO | Reinsurance Group vs. JAPAN AIRLINES | Reinsurance Group vs. Neinor Homes SA | Reinsurance Group vs. Focus Home Interactive |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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