Correlation Between UNIQA INSURANCE and Adobe
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Adobe 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 Adobe 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 Adobe Inc, you can compare the effects of market volatilities on UNIQA INSURANCE and Adobe 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 Adobe. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Adobe.
Diversification Opportunities for UNIQA INSURANCE and Adobe
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Adobe is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Adobe Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe Inc 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 Adobe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe Inc has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Adobe go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Adobe
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.42 times more return on investment than Adobe. However, UNIQA INSURANCE GR is 2.4 times less risky than Adobe. It trades about 0.18 of its potential returns per unit of risk. Adobe Inc is currently generating about -0.03 per unit of risk. If you would invest 731.00 in UNIQA INSURANCE GR on October 26, 2024 and sell it today you would earn a total of 87.00 from holding UNIQA INSURANCE GR or generate 11.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
UNIQA INSURANCE GR vs. Adobe Inc
Performance |
Timeline |
UNIQA INSURANCE GR |
Adobe Inc |
UNIQA INSURANCE and Adobe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNIQA INSURANCE and Adobe
The main advantage of trading using opposite UNIQA INSURANCE and Adobe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Adobe 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 Adobe will offset losses from the drop in Adobe's long position.UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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