Correlation Between UNIQA Insurance and H FARM
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and H FARM 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 H FARM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIQA Insurance Group and H FARM SPA, you can compare the effects of market volatilities on UNIQA Insurance and H FARM 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 H FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and H FARM.
Diversification Opportunities for UNIQA Insurance and H FARM
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and 5JQ is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and H FARM SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H FARM SPA 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 Group are associated (or correlated) with H FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H FARM SPA has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and H FARM go up and down completely randomly.
Pair Corralation between UNIQA Insurance and H FARM
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.24 times more return on investment than H FARM. However, UNIQA Insurance Group is 4.11 times less risky than H FARM. It trades about 0.02 of its potential returns per unit of risk. H FARM SPA is currently generating about 0.0 per unit of risk. If you would invest 692.00 in UNIQA Insurance Group on September 3, 2024 and sell it today you would earn a total of 30.00 from holding UNIQA Insurance Group or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 54.46% |
| Values | Daily Returns |
UNIQA Insurance Group vs. H FARM SPA
Performance |
| Timeline |
| UNIQA Insurance Group |
| H FARM SPA |
UNIQA Insurance and H FARM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and H FARM
The main advantage of trading using opposite UNIQA Insurance and H FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, H FARM 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 H FARM will offset losses from the drop in H FARM's long position.| UNIQA Insurance vs. H FARM SPA | UNIQA Insurance vs. Soken Chemical Engineering | UNIQA Insurance vs. PTT Global Chemical | UNIQA Insurance vs. TITAN MACHINERY |
| H FARM vs. ADRIATIC METALS LS 013355 | H FARM vs. GALENA MINING LTD | H FARM vs. Sunny Optical Technology | H FARM vs. GREENX METALS LTD |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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