Correlation Between UNIQA Insurance and Beeks Trading

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

Diversification Opportunities for UNIQA Insurance and Beeks Trading

-0.45

Correlation Coefficient

UNIQA Insurance  Beeks Trading

Very good diversification

The 3 months correlation between UNIQA and Beeks is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading 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 Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Beeks Trading go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Beeks Trading

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the Beeks Trading. But the stock apears to be less risky and, when comparing its historical volatility, UNIQA Insurance Group is 3.73 times less risky than Beeks Trading. The stock trades about -0.09 of its potential returns per unit of risk. The Beeks Trading is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  25,400  in Beeks Trading on September 12, 2024 and sell it today you would earn a total of  4,600  from holding Beeks Trading or generate 18.11% return on investment over 90 days.

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

UNIQA Insurance Group  vs.  Beeks Trading

UNIQA Insurance Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNIQA Insurance Group has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Beeks Trading

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Beeks Trading are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Beeks Trading exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with UNIQA Insurance and Beeks Trading

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

The idea behind UNIQA Insurance Group and Beeks Trading 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.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.