Correlation Between Uniper SE and Ecclesiastical Insurance
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Ecclesiastical 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 Uniper SE and Ecclesiastical Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Ecclesiastical Insurance Office, you can compare the effects of market volatilities on Uniper SE and Ecclesiastical 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 Uniper SE with a short position of Ecclesiastical Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Ecclesiastical Insurance.
Diversification Opportunities for Uniper SE and Ecclesiastical Insurance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Uniper and Ecclesiastical is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Ecclesiastical Insurance Offic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecclesiastical Insurance and Uniper SE 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 Uniper SE are associated (or correlated) with Ecclesiastical Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecclesiastical Insurance has no effect on the direction of Uniper SE i.e., Uniper SE and Ecclesiastical Insurance go up and down completely randomly.
Pair Corralation between Uniper SE and Ecclesiastical Insurance
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Ecclesiastical Insurance. In addition to that, Uniper SE is 2.42 times more volatile than Ecclesiastical Insurance Office. It trades about -0.2 of its total potential returns per unit of risk. Ecclesiastical Insurance Office is currently generating about 0.01 per unit of volatility. If you would invest 13,164 in Ecclesiastical Insurance Office on September 26, 2024 and sell it today you would earn a total of 36.00 from holding Ecclesiastical Insurance Office or generate 0.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Uniper SE vs. Ecclesiastical Insurance Offic
Performance |
Timeline |
Uniper SE |
Ecclesiastical Insurance |
Uniper SE and Ecclesiastical Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Uniper SE and Ecclesiastical Insurance
The main advantage of trading using opposite Uniper SE and Ecclesiastical Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Ecclesiastical 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 Ecclesiastical Insurance will offset losses from the drop in Ecclesiastical Insurance's long position.Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
Ecclesiastical Insurance vs. Automatic Data Processing | Ecclesiastical Insurance vs. Lowland Investment Co | Ecclesiastical Insurance vs. FC Investment Trust | Ecclesiastical Insurance vs. Datalogic |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |