Correlation Between UNIQA Insurance and JT ARCH
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and JT ARCH 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 JT ARCH 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 JT ARCH INVESTMENTS, you can compare the effects of market volatilities on UNIQA Insurance and JT ARCH 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 JT ARCH. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and JT ARCH.
Diversification Opportunities for UNIQA Insurance and JT ARCH
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and JTINA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and JT ARCH INVESTMENTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JT ARCH INVESTMENTS 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 JT ARCH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JT ARCH INVESTMENTS has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and JT ARCH go up and down completely randomly.
Pair Corralation between UNIQA Insurance and JT ARCH
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the JT ARCH. In addition to that, UNIQA Insurance is 3.95 times more volatile than JT ARCH INVESTMENTS. It trades about -0.07 of its total potential returns per unit of risk. JT ARCH INVESTMENTS is currently generating about 0.2 per unit of volatility. If you would invest 159.00 in JT ARCH INVESTMENTS on September 3, 2024 and sell it today you would earn a total of 11.00 from holding JT ARCH INVESTMENTS or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.49% |
| Values | Daily Returns |
UNIQA Insurance Group vs. JT ARCH INVESTMENTS
Performance |
| Timeline |
| UNIQA Insurance Group |
| JT ARCH INVESTMENTS |
UNIQA Insurance and JT ARCH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and JT ARCH
The main advantage of trading using opposite UNIQA Insurance and JT ARCH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, JT ARCH 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 JT ARCH will offset losses from the drop in JT ARCH's long position.| UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Komercni Banka AS | UNIQA Insurance vs. Moneta Money Bank |
| JT ARCH vs. Cez AS | JT ARCH vs. Kofola CeskoSlovensko as | JT ARCH vs. Primoco UAV SE | JT ARCH vs. MT 1997 AS |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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