Correlation Between UNIQA INSURANCE and LASSONDE INDUSTINC

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

Diversification Opportunities for UNIQA INSURANCE and LASSONDE INDUSTINC

0.44

Correlation Coefficient

UNIQA INSURANCE  LASSONDE INDUSTINC

Very weak diversification

The 3 months correlation between UNIQA and LASSONDE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and LASSONDE INDUSTINC A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LASSONDE INDUSTINC 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 LASSONDE INDUSTINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LASSONDE INDUSTINC has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and LASSONDE INDUSTINC go up and down completely randomly.

Pair Corralation between UNIQA INSURANCE and LASSONDE INDUSTINC

Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.56 times more return on investment than LASSONDE INDUSTINC. However, UNIQA INSURANCE GR is 1.79 times less risky than LASSONDE INDUSTINC. It trades about 0.18 of its potential returns per unit of risk. LASSONDE INDUSTINC A is currently generating about 0.0 per unit of risk. If you would invest  725.00  in UNIQA INSURANCE GR on October 24, 2024 and sell it today you would earn a total of  82.00  from holding UNIQA INSURANCE GR or generate 11.31% return on investment over 90 days.

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

UNIQA INSURANCE GR  vs.  LASSONDE INDUSTINC A

UNIQA INSURANCE GR

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, UNIQA INSURANCE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

LASSONDE INDUSTINC

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days LASSONDE INDUSTINC A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, LASSONDE INDUSTINC 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 LASSONDE INDUSTINC

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

The idea behind UNIQA INSURANCE GR and LASSONDE INDUSTINC A 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.