Correlation Between UNIQA INSURANCE and ResMed
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and ResMed 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 ResMed 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 ResMed Inc, you can compare the effects of market volatilities on UNIQA INSURANCE and ResMed 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 ResMed. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and ResMed.
Diversification Opportunities for UNIQA INSURANCE and ResMed
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and ResMed is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and ResMed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ResMed Inc 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 ResMed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ResMed Inc has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and ResMed go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and ResMed
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 4.93 times less return on investment than ResMed. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 2.63 times less risky than ResMed. It trades about 0.03 of its potential returns per unit of risk. ResMed Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 19,269 in ResMed Inc on October 13, 2024 and sell it today you would earn a total of 3,731 from holding ResMed Inc or generate 19.36% 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. ResMed Inc
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| ResMed Inc |
UNIQA INSURANCE and ResMed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and ResMed
The main advantage of trading using opposite UNIQA INSURANCE and ResMed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, ResMed 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 ResMed will offset losses from the drop in ResMed's long position.| UNIQA INSURANCE vs. SPORTING | UNIQA INSURANCE vs. Constellation Software | UNIQA INSURANCE vs. NTG Nordic Transport | UNIQA INSURANCE vs. BII Railway Transportation |
| ResMed vs. DATAGROUP SE | ResMed vs. UNIQA INSURANCE GR | ResMed vs. CDN IMPERIAL BANK | ResMed vs. Automatic Data Processing |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |