Correlation Between UNIQA INSURANCE and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Tsingtao Brewery 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 Tsingtao Brewery 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 Tsingtao Brewery, you can compare the effects of market volatilities on UNIQA INSURANCE and Tsingtao Brewery 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 Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Tsingtao Brewery.
Diversification Opportunities for UNIQA INSURANCE and Tsingtao Brewery
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UNIQA and Tsingtao is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery 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 Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Tsingtao Brewery
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.39 times more return on investment than Tsingtao Brewery. However, UNIQA INSURANCE GR is 2.57 times less risky than Tsingtao Brewery. It trades about 0.26 of its potential returns per unit of risk. Tsingtao Brewery is currently generating about -0.2 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 Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Tsingtao Brewery
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Tsingtao Brewery |
UNIQA INSURANCE and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Tsingtao Brewery
The main advantage of trading using opposite UNIQA INSURANCE and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery'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 |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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