Correlation Between UNIQA INSURANCE and SAFETY MEDICAL
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and SAFETY MEDICAL 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 SAFETY MEDICAL 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 SAFETY MEDICAL PROD, you can compare the effects of market volatilities on UNIQA INSURANCE and SAFETY MEDICAL 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 SAFETY MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and SAFETY MEDICAL.
Diversification Opportunities for UNIQA INSURANCE and SAFETY MEDICAL
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UNIQA and SAFETY is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and SAFETY MEDICAL PROD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAFETY MEDICAL PROD 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 SAFETY MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAFETY MEDICAL PROD has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and SAFETY MEDICAL go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and SAFETY MEDICAL
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.58 times more return on investment than SAFETY MEDICAL. However, UNIQA INSURANCE GR is 1.72 times less risky than SAFETY MEDICAL. It trades about 0.22 of its potential returns per unit of risk. SAFETY MEDICAL PROD is currently generating about -0.46 per unit of risk. If you would invest 731.00 in UNIQA INSURANCE GR on September 25, 2024 and sell it today you would earn a total of 37.00 from holding UNIQA INSURANCE GR or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. SAFETY MEDICAL PROD
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| SAFETY MEDICAL PROD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UNIQA INSURANCE and SAFETY MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and SAFETY MEDICAL
The main advantage of trading using opposite UNIQA INSURANCE and SAFETY MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, SAFETY MEDICAL 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 SAFETY MEDICAL will offset losses from the drop in SAFETY MEDICAL's long position.| UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Microsoft | UNIQA INSURANCE vs. Microsoft |
| SAFETY MEDICAL vs. UNIQA INSURANCE GR | SAFETY MEDICAL vs. Ping An Insurance | SAFETY MEDICAL vs. REVO INSURANCE SPA | SAFETY MEDICAL vs. SBI Insurance Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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