Correlation Between Various Eateries and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Various Eateries and UNIQA Insurance 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 Various Eateries and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Various Eateries PLC and UNIQA Insurance Group, you can compare the effects of market volatilities on Various Eateries and UNIQA Insurance 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 Various Eateries with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Various Eateries and UNIQA Insurance.
Diversification Opportunities for Various Eateries and UNIQA Insurance
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Various and UNIQA is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Various Eateries PLC and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and Various Eateries 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 Various Eateries PLC are associated (or correlated) with UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of Various Eateries i.e., Various Eateries and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Various Eateries and UNIQA Insurance
Assuming the 90 days trading horizon Various Eateries PLC is expected to under-perform the UNIQA Insurance. In addition to that, Various Eateries is 2.61 times more volatile than UNIQA Insurance Group. It trades about -0.05 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.05 per unit of volatility. If you would invest 606.00 in UNIQA Insurance Group on September 2, 2024 and sell it today you would earn a total of 113.00 from holding UNIQA Insurance Group or generate 18.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.6% |
| Values | Daily Returns |
Various Eateries PLC vs. UNIQA Insurance Group
Performance |
| Timeline |
| Various Eateries PLC |
| UNIQA Insurance Group |
Various Eateries and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Various Eateries and UNIQA Insurance
The main advantage of trading using opposite Various Eateries and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Various Eateries position performs unexpectedly, UNIQA Insurance 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 UNIQA Insurance will offset losses from the drop in UNIQA Insurance's long position.| Various Eateries vs. Viridian Therapeutics | Various Eateries vs. CVR Energy | Various Eateries vs. Nationwide Building Society | Various Eateries vs. Dollar Tree |
| UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance vs. Triad Group PLC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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