Correlation Between UNIQA Insurance and Anglesey Mining

Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Anglesey Mining 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 Anglesey Mining 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 Anglesey Mining, you can compare the effects of market volatilities on UNIQA Insurance and Anglesey Mining 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 Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Anglesey Mining.

Diversification Opportunities for UNIQA Insurance and Anglesey Mining

-0.2

Correlation Coefficient

UNIQA Insurance  Anglesey Mining

Good diversification

The 3 months correlation between UNIQA and Anglesey is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey Mining 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 Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Anglesey Mining go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Anglesey Mining

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.24 times more return on investment than Anglesey Mining. However, UNIQA Insurance Group is 4.13 times less risky than Anglesey Mining. It trades about 0.05 of its potential returns per unit of risk. Anglesey Mining is currently generating about -0.14 per unit of risk. If you would invest  754.00  in UNIQA Insurance Group on September 26, 2024 and sell it today you would earn a total of  19.00  from holding UNIQA Insurance Group or generate 2.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

UNIQA Insurance Group  vs.  Anglesey Mining

UNIQA Insurance Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA Insurance Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, UNIQA Insurance is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Anglesey Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anglesey Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with UNIQA Insurance and Anglesey Mining

The main advantage of trading using opposite UNIQA Insurance and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Anglesey Mining 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.

The idea behind UNIQA Insurance Group and Anglesey Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.