Correlation Between UNIQA INSURANCE and Fanuc

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

Diversification Opportunities for UNIQA INSURANCE and Fanuc

0.41

Correlation Coefficient

UNIQA INSURANCE  Fanuc

Very weak diversification

The 3 months correlation between UNIQA and Fanuc is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Fanuc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fanuc 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 Fanuc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fanuc has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Fanuc go up and down completely randomly.

Pair Corralation between UNIQA INSURANCE and Fanuc

Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.64 times more return on investment than Fanuc. However, UNIQA INSURANCE GR is 1.57 times less risky than Fanuc. It trades about 0.3 of its potential returns per unit of risk. Fanuc is currently generating about 0.08 per unit of risk. If you would invest  761.00  in UNIQA INSURANCE GR on December 20, 2024 and sell it today you would earn a total of  175.00  from holding UNIQA INSURANCE GR or generate 23.0% 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.  Fanuc

UNIQA INSURANCE GR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, UNIQA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Fanuc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fanuc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Fanuc may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with UNIQA INSURANCE and Fanuc

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

The idea behind UNIQA INSURANCE GR and Fanuc 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 Transaction History module to view history of all your transactions and understand their impact on performance.