Correlation Between WESTERN DIGITAL and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both WESTERN DIGITAL 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 WESTERN DIGITAL and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESTERN DIGITAL and UNIQA INSURANCE GR, you can compare the effects of market volatilities on WESTERN DIGITAL 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 WESTERN DIGITAL with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESTERN DIGITAL and UNIQA INSURANCE.
Diversification Opportunities for WESTERN DIGITAL and UNIQA INSURANCE
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WESTERN and UNIQA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding WESTERN DIGITAL and UNIQA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA INSURANCE GR and WESTERN DIGITAL 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 WESTERN DIGITAL 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 GR has no effect on the direction of WESTERN DIGITAL i.e., WESTERN DIGITAL and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between WESTERN DIGITAL and UNIQA INSURANCE
Assuming the 90 days trading horizon WESTERN DIGITAL is expected to generate 2.9 times more return on investment than UNIQA INSURANCE. However, WESTERN DIGITAL is 2.9 times more volatile than UNIQA INSURANCE GR. It trades about 0.07 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.06 per unit of risk. If you would invest 2,976 in WESTERN DIGITAL on September 24, 2024 and sell it today you would earn a total of 2,797 from holding WESTERN DIGITAL or generate 93.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WESTERN DIGITAL vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| WESTERN DIGITAL |
| UNIQA INSURANCE GR |
WESTERN DIGITAL and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESTERN DIGITAL and UNIQA INSURANCE
The main advantage of trading using opposite WESTERN DIGITAL and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESTERN DIGITAL 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.| WESTERN DIGITAL vs. Apple Inc | WESTERN DIGITAL vs. Apple Inc | WESTERN DIGITAL vs. Apple Inc | WESTERN DIGITAL vs. Microsoft |
| UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Microsoft |
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.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |