Correlation Between UNIQA Insurance and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on UNIQA Insurance and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Samsung Electronics.
Diversification Opportunities for UNIQA Insurance and Samsung Electronics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UNIQA and Samsung is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Samsung Electronics go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Samsung Electronics
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.36 times more return on investment than Samsung Electronics. However, UNIQA Insurance Group is 2.75 times less risky than Samsung Electronics. It trades about 0.05 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.15 per unit of risk. If you would invest 746.00 in UNIQA Insurance Group on September 24, 2024 and sell it today you would earn a total of 19.00 from holding UNIQA Insurance Group or generate 2.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
UNIQA Insurance Group vs. Samsung Electronics Co
Performance |
Timeline |
UNIQA Insurance Group |
Samsung Electronics |
UNIQA Insurance and Samsung Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNIQA Insurance and Samsung Electronics
The main advantage of trading using opposite UNIQA Insurance and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance vs. Triad Group PLC |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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