Correlation Between UNIQA INSURANCE and OPKO HEALTH
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and OPKO HEALTH 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 OPKO HEALTH 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 OPKO HEALTH, you can compare the effects of market volatilities on UNIQA INSURANCE and OPKO HEALTH 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 OPKO HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and OPKO HEALTH.
Diversification Opportunities for UNIQA INSURANCE and OPKO HEALTH
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNIQA and OPKO is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and OPKO HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPKO HEALTH 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 OPKO HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPKO HEALTH has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and OPKO HEALTH go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and OPKO HEALTH
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.66 times more return on investment than OPKO HEALTH. However, UNIQA INSURANCE GR is 1.52 times less risky than OPKO HEALTH. It trades about 0.57 of its potential returns per unit of risk. OPKO HEALTH is currently generating about -0.28 per unit of risk. If you would invest 737.00 in UNIQA INSURANCE GR on October 12, 2024 and sell it today you would earn a total of 47.00 from holding UNIQA INSURANCE GR or generate 6.38% 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. OPKO HEALTH
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| OPKO HEALTH |
UNIQA INSURANCE and OPKO HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and OPKO HEALTH
The main advantage of trading using opposite UNIQA INSURANCE and OPKO HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, OPKO HEALTH 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 OPKO HEALTH will offset losses from the drop in OPKO HEALTH's long position.| UNIQA INSURANCE vs. MINCO SILVER | UNIQA INSURANCE vs. Carnegie Clean Energy | UNIQA INSURANCE vs. Fortescue Metals Group | UNIQA INSURANCE vs. Forsys Metals Corp |
| OPKO HEALTH vs. DEVRY EDUCATION GRP | OPKO HEALTH vs. STRAYER EDUCATION | OPKO HEALTH vs. Take Two Interactive Software | OPKO HEALTH vs. FORMPIPE SOFTWARE AB |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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