Correlation Between UNIQA INSURANCE and Shenandoah Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio 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 Shenandoah Telecommunications, you can compare the effects of market volatilities on UNIQA INSURANCE and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Shenandoah Telecommunicatio.
Diversification Opportunities for UNIQA INSURANCE and Shenandoah Telecommunicatio
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Shenandoah is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Shenandoah Telecommunicatio go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Shenandoah Telecommunicatio
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.44 times more return on investment than Shenandoah Telecommunicatio. However, UNIQA INSURANCE GR is 2.29 times less risky than Shenandoah Telecommunicatio. It trades about 0.26 of its potential returns per unit of risk. Shenandoah Telecommunications is currently generating about -0.51 per unit of risk. If you would invest 782.00 in UNIQA INSURANCE GR on November 7, 2024 and sell it today you would earn a total of 29.00 from holding UNIQA INSURANCE GR or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Shenandoah Telecommunications
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Shenandoah Telecommunicatio |
UNIQA INSURANCE and Shenandoah Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Shenandoah Telecommunicatio
The main advantage of trading using opposite UNIQA INSURANCE and Shenandoah Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio will offset losses from the drop in Shenandoah Telecommunicatio's long position.| UNIQA INSURANCE vs. CVR Medical Corp | UNIQA INSURANCE vs. Inspire Medical Systems | UNIQA INSURANCE vs. Canon Marketing Japan | UNIQA INSURANCE vs. IMAGIN MEDICAL INC |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |