Correlation Between UNIQA INSURANCE and Sanyo Chemical
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Sanyo Chemical 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 Sanyo Chemical 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 Sanyo Chemical Industries, you can compare the effects of market volatilities on UNIQA INSURANCE and Sanyo Chemical 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 Sanyo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Sanyo Chemical.
Diversification Opportunities for UNIQA INSURANCE and Sanyo Chemical
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Sanyo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Sanyo Chemical Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanyo Chemical Industries 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 Sanyo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanyo Chemical Industries has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Sanyo Chemical go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Sanyo Chemical
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.61 times more return on investment than Sanyo Chemical. However, UNIQA INSURANCE GR is 1.65 times less risky than Sanyo Chemical. It trades about 0.35 of its potential returns per unit of risk. Sanyo Chemical Industries is currently generating about -0.16 per unit of risk. If you would invest 768.00 in UNIQA INSURANCE GR on October 31, 2024 and sell it today you would earn a total of 33.00 from holding UNIQA INSURANCE GR or generate 4.3% 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. Sanyo Chemical Industries
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Sanyo Chemical Industries |
UNIQA INSURANCE and Sanyo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Sanyo Chemical
The main advantage of trading using opposite UNIQA INSURANCE and Sanyo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Sanyo Chemical 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 Sanyo Chemical will offset losses from the drop in Sanyo Chemical's long position.| UNIQA INSURANCE vs. Titan Machinery | UNIQA INSURANCE vs. Insurance Australia Group | UNIQA INSURANCE vs. REVO INSURANCE SPA | UNIQA INSURANCE vs. Hanison Construction Holdings |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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