Correlation Between UNIQA Insurance and Unilever PLC
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Unilever PLC 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 Unilever PLC 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 Unilever PLC, you can compare the effects of market volatilities on UNIQA Insurance and Unilever PLC 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 Unilever PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Unilever PLC.
Diversification Opportunities for UNIQA Insurance and Unilever PLC
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and Unilever is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Unilever PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unilever PLC 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 Unilever PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unilever PLC has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Unilever PLC go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Unilever PLC
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 1.0 times more return on investment than Unilever PLC. However, UNIQA Insurance is 1.0 times more volatile than Unilever PLC. It trades about -0.11 of its potential returns per unit of risk. Unilever PLC is currently generating about -0.25 per unit of risk. If you would invest 735.00 in UNIQA Insurance Group on August 23, 2024 and sell it today you would lose (15.00) from holding UNIQA Insurance Group or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Unilever PLC
Performance |
| Timeline |
| UNIQA Insurance Group |
| Unilever PLC |
UNIQA Insurance and Unilever PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Unilever PLC
The main advantage of trading using opposite UNIQA Insurance and Unilever PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Unilever PLC 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 Unilever PLC will offset losses from the drop in Unilever PLC's long position.| UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Oesterr Post AG | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine AG |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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