Correlation Between Acadia Realty and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Acadia Realty 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 Acadia Realty and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acadia Realty Trust and UNIQA INSURANCE GR, you can compare the effects of market volatilities on Acadia Realty 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 Acadia Realty with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadia Realty and UNIQA INSURANCE.
Diversification Opportunities for Acadia Realty and UNIQA INSURANCE
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acadia and UNIQA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust 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 Acadia Realty 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 Acadia Realty Trust 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 Acadia Realty i.e., Acadia Realty and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between Acadia Realty and UNIQA INSURANCE
Assuming the 90 days horizon Acadia Realty Trust is expected to under-perform the UNIQA INSURANCE. But the stock apears to be less risky and, when comparing its historical volatility, Acadia Realty Trust is 1.01 times less risky than UNIQA INSURANCE. The stock trades about -0.29 of its potential returns per unit of risk. The UNIQA INSURANCE GR is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 731.00 in UNIQA INSURANCE GR on September 24, 2024 and sell it today you would earn a total of 30.00 from holding UNIQA INSURANCE GR or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acadia Realty Trust vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| Acadia Realty Trust |
| UNIQA INSURANCE GR |
Acadia Realty and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acadia Realty and UNIQA INSURANCE
The main advantage of trading using opposite Acadia Realty and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadia Realty 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.| Acadia Realty vs. Simon Property Group | Acadia Realty vs. Realty Income | Acadia Realty vs. Kimco Realty | Acadia Realty vs. Range Resources Corp |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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