Correlation Between UNIQA Insurance and PX Prague
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and PX Prague 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 PX Prague 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 PX Prague Stock, you can compare the effects of market volatilities on UNIQA Insurance and PX Prague 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 PX Prague. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and PX Prague.
Diversification Opportunities for UNIQA Insurance and PX Prague
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and PX Prague is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and PX Prague Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PX Prague Stock 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 PX Prague. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PX Prague Stock has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and PX Prague go up and down completely randomly.
Pair Corralation between UNIQA Insurance and PX Prague
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 4.25 times less return on investment than PX Prague. In addition to that, UNIQA Insurance is 1.52 times more volatile than PX Prague Stock. It trades about 0.02 of its total potential returns per unit of risk. PX Prague Stock is currently generating about 0.1 per unit of volatility. If you would invest 120,279 in PX Prague Stock on August 25, 2024 and sell it today you would earn a total of 48,830 from holding PX Prague Stock or generate 40.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
UNIQA Insurance Group vs. PX Prague Stock
Performance |
| Timeline |
UNIQA Insurance and PX Prague Volatility Contrast
Predicted Return Density |
| Returns |
UNIQA Insurance Group
Pair trading matchups for UNIQA Insurance
PX Prague Stock
Pair trading matchups for PX Prague
Pair Trading with UNIQA Insurance and PX Prague
The main advantage of trading using opposite UNIQA Insurance and PX Prague positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, PX Prague 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 PX Prague will offset losses from the drop in PX Prague's long position.| UNIQA Insurance vs. Cez AS | UNIQA Insurance vs. MT 1997 AS | UNIQA Insurance vs. Kofola CeskoSlovensko as | UNIQA Insurance vs. HARDWARIO as |
| PX Prague vs. Moneta Money Bank | PX Prague vs. JT ARCH INVESTMENTS | PX Prague vs. Raiffeisen Bank International | PX Prague vs. Komercni Banka 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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