Correlation Between UNIQA Insurance and Creo Medical

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

Diversification Opportunities for UNIQA Insurance and Creo Medical

0.15

Correlation Coefficient

UNIQA Insurance  Creo Medical

Average diversification

The 3 months correlation between UNIQA and Creo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Creo Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creo Medical Group 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 Creo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creo Medical Group has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Creo Medical go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Creo Medical

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.26 times more return on investment than Creo Medical. However, UNIQA Insurance Group is 3.87 times less risky than Creo Medical. It trades about 0.06 of its potential returns per unit of risk. Creo Medical Group is currently generating about -0.09 per unit of risk. If you would invest  701.00  in UNIQA Insurance Group on October 9, 2024 and sell it today you would earn a total of  81.00  from holding UNIQA Insurance Group or generate 11.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.59%
Values	Daily Returns

UNIQA Insurance Group  vs.  Creo Medical Group

UNIQA Insurance Group

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA Insurance Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, UNIQA Insurance may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Creo Medical Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Creo Medical Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with UNIQA Insurance and Creo Medical

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

The idea behind UNIQA Insurance Group and Creo Medical Group 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.