Correlation Between UNIQA Insurance and Invesco Physical

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

Diversification Opportunities for UNIQA Insurance and Invesco Physical

0.46

Correlation Coefficient

UNIQA Insurance  Invesco Physical

Very weak diversification

The 3 months correlation between UNIQA and Invesco is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Invesco Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Physical Silver 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 Invesco Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Physical Silver has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Invesco Physical go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Invesco Physical

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.61 times more return on investment than Invesco Physical. However, UNIQA Insurance Group is 1.65 times less risky than Invesco Physical. It trades about 0.37 of its potential returns per unit of risk. Invesco Physical Silver is currently generating about 0.05 per unit of risk. If you would invest  719.00  in UNIQA Insurance Group on November 29, 2024 and sell it today you would earn a total of  152.00  from holding UNIQA Insurance Group or generate 21.14% return on investment over 90 days.

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

UNIQA Insurance Group  vs.  Invesco Physical Silver

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 29 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, UNIQA Insurance unveiled solid returns over the last few months and may actually be approaching a breakup point.

Invesco Physical Silver

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Physical Silver are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Invesco Physical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with UNIQA Insurance and Invesco Physical

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

The idea behind UNIQA Insurance Group and Invesco Physical Silver 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.