Correlation Between UNIQA Insurance and National Beverage

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

Diversification Opportunities for UNIQA Insurance and National Beverage

-0.65

Correlation Coefficient

UNIQA Insurance  National Beverage

Excellent diversification

The 3 months correlation between UNIQA and National is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage Corp 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and National Beverage go up and down completely randomly.

Pair Corralation between UNIQA Insurance and National Beverage

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.59 times more return on investment than National Beverage. However, UNIQA Insurance Group is 1.7 times less risky than National Beverage. It trades about 0.39 of its potential returns per unit of risk. National Beverage Corp is currently generating about -0.12 per unit of risk. If you would invest  773.00  in UNIQA Insurance Group on December 23, 2024 and sell it today you would earn a total of  199.00  from holding UNIQA Insurance Group or generate 25.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

UNIQA Insurance Group  vs.  National Beverage Corp

UNIQA Insurance Group

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA Insurance Group are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, UNIQA Insurance unveiled solid returns over the last few months and may actually be approaching a breakup point.

National Beverage Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days National Beverage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with UNIQA Insurance and National Beverage

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

The idea behind UNIQA Insurance Group and National Beverage Corp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.