Correlation Between UNIQA Insurance and Morgan Advanced

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

Diversification Opportunities for UNIQA Insurance and Morgan Advanced

-0.82

Correlation Coefficient

UNIQA Insurance  Morgan Advanced

Pay attention - limited upside

The 3 months correlation between UNIQA and Morgan is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Morgan Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Advanced Materials 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 Morgan Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Advanced Materials has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Morgan Advanced go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Morgan Advanced

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.37 times more return on investment than Morgan Advanced. However, UNIQA Insurance Group is 2.71 times less risky than Morgan Advanced. It trades about 0.39 of its potential returns per unit of risk. Morgan Advanced Materials is currently generating about -0.14 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	Significant
Accuracy	100.0%
Values	Daily Returns

UNIQA Insurance Group  vs.  Morgan Advanced Materials

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.

Morgan Advanced Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Morgan Advanced Materials 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 Morgan Advanced

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

The idea behind UNIQA Insurance Group and Morgan Advanced Materials 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.