Correlation Between UNIQA INSURANCE and Jupiter Fund

Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Jupiter Fund 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 Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UNIQA INSURANCE GR and Jupiter Fund Management, you can compare the effects of market volatilities on UNIQA INSURANCE and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Jupiter Fund.

Diversification Opportunities for UNIQA INSURANCE and Jupiter Fund

0.62

Correlation Coefficient

UNIQA INSURANCE  Jupiter Fund

Poor diversification

The 3 months correlation between UNIQA and Jupiter is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 GR are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Jupiter Fund go up and down completely randomly.

Pair Corralation between UNIQA INSURANCE and Jupiter Fund

Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.68 times more return on investment than Jupiter Fund. However, UNIQA INSURANCE GR is 1.47 times less risky than Jupiter Fund. It trades about 0.06 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.02 per unit of risk. If you would invest  738.00  in UNIQA INSURANCE GR on September 29, 2024 and sell it today you would earn a total of  28.00  from holding UNIQA INSURANCE GR or generate 3.79% return on investment over 90 days.

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

UNIQA INSURANCE GR  vs.  Jupiter Fund Management

UNIQA INSURANCE GR

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 4 (%) 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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Jupiter Fund Management

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jupiter Fund Management are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Jupiter Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with UNIQA INSURANCE and Jupiter Fund

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

The idea behind UNIQA INSURANCE GR and Jupiter Fund Management 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.