Correlation Between UNIQA INSURANCE and MTY Food

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

Diversification Opportunities for UNIQA INSURANCE and MTY Food

-0.01

Correlation Coefficient

UNIQA INSURANCE  MTY Food

Good diversification

The 3 months correlation between UNIQA and MTY is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food 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 GR are associated (or correlated) with MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and MTY Food go up and down completely randomly.

Pair Corralation between UNIQA INSURANCE and MTY Food

Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.45 times more return on investment than MTY Food. However, UNIQA INSURANCE GR is 2.22 times less risky than MTY Food. It trades about 0.05 of its potential returns per unit of risk. MTY Food Group is currently generating about -0.02 per unit of risk. If you would invest  665.00  in UNIQA INSURANCE GR on October 11, 2024 and sell it today you would earn a total of  119.00  from holding UNIQA INSURANCE GR or generate 17.89% return on investment over 90 days.

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

UNIQA INSURANCE GR  vs.  MTY Food Group

UNIQA INSURANCE GR

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 8 (%) 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.

MTY Food Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MTY Food Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, MTY Food is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with UNIQA INSURANCE and MTY Food

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

The idea behind UNIQA INSURANCE GR and MTY Food 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.

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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.