Correlation Between OPKO HEALTH and UNIQA INSURANCE
Can any of the company-specific risk be diversified away by investing in both OPKO HEALTH 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 OPKO HEALTH and UNIQA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPKO HEALTH and UNIQA INSURANCE GR, you can compare the effects of market volatilities on OPKO HEALTH 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 OPKO HEALTH with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPKO HEALTH and UNIQA INSURANCE.
Diversification Opportunities for OPKO HEALTH and UNIQA INSURANCE
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between OPKO and UNIQA is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding OPKO HEALTH 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 OPKO HEALTH 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 OPKO HEALTH 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 OPKO HEALTH i.e., OPKO HEALTH and UNIQA INSURANCE go up and down completely randomly.
Pair Corralation between OPKO HEALTH and UNIQA INSURANCE
Assuming the 90 days trading horizon OPKO HEALTH is expected to under-perform the UNIQA INSURANCE. In addition to that, OPKO HEALTH is 1.52 times more volatile than UNIQA INSURANCE GR. It trades about -0.28 of its total potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.57 per unit of volatility. If you would invest 737.00 in UNIQA INSURANCE GR on October 12, 2024 and sell it today you would earn a total of 47.00 from holding UNIQA INSURANCE GR or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPKO HEALTH vs. UNIQA INSURANCE GR
Performance |
| Timeline |
| OPKO HEALTH |
| UNIQA INSURANCE GR |
OPKO HEALTH and UNIQA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPKO HEALTH and UNIQA INSURANCE
The main advantage of trading using opposite OPKO HEALTH and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPKO HEALTH 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.| OPKO HEALTH vs. DEVRY EDUCATION GRP | OPKO HEALTH vs. STRAYER EDUCATION | OPKO HEALTH vs. Take Two Interactive Software | OPKO HEALTH vs. FORMPIPE SOFTWARE AB |
| UNIQA INSURANCE vs. MINCO SILVER | UNIQA INSURANCE vs. Carnegie Clean Energy | UNIQA INSURANCE vs. Fortescue Metals Group | UNIQA INSURANCE vs. Forsys Metals Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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