Correlation Between UNIQA INSURANCE and Corporate Office
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Corporate Office 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 Corporate Office 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 Corporate Office Properties, you can compare the effects of market volatilities on UNIQA INSURANCE and Corporate Office 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 Corporate Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Corporate Office.
Diversification Opportunities for UNIQA INSURANCE and Corporate Office
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Corporate is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Corporate Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Office Pro 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 Corporate Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Office Pro has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Corporate Office go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Corporate Office
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.51 times more return on investment than Corporate Office. However, UNIQA INSURANCE GR is 1.96 times less risky than Corporate Office. It trades about 0.16 of its potential returns per unit of risk. Corporate Office Properties is currently generating about -0.06 per unit of risk. If you would invest 782.00 in UNIQA INSURANCE GR on November 6, 2024 and sell it today you would earn a total of 19.00 from holding UNIQA INSURANCE GR or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Corporate Office Properties
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Corporate Office Pro |
UNIQA INSURANCE and Corporate Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Corporate Office
The main advantage of trading using opposite UNIQA INSURANCE and Corporate Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Corporate Office 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 Corporate Office will offset losses from the drop in Corporate Office's long position.| UNIQA INSURANCE vs. Sunny Optical Technology | UNIQA INSURANCE vs. Firan Technology Group | UNIQA INSURANCE vs. VELA TECHNOLPLC LS 0001 | UNIQA INSURANCE vs. Sanyo Chemical Industries |
| Corporate Office vs. GBS Software AG | Corporate Office vs. Mitsubishi Gas Chemical | Corporate Office vs. EITZEN CHEMICALS | Corporate Office vs. Easy Software AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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