Correlation Between UNIQA INSURANCE and TELECOM ITALIA
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and TELECOM ITALIA 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 TELECOM ITALIA 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 TELECOM ITALIA, you can compare the effects of market volatilities on UNIQA INSURANCE and TELECOM ITALIA 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 TELECOM ITALIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and TELECOM ITALIA.
Diversification Opportunities for UNIQA INSURANCE and TELECOM ITALIA
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and TELECOM is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and TELECOM ITALIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELECOM ITALIA 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 TELECOM ITALIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELECOM ITALIA has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and TELECOM ITALIA go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and TELECOM ITALIA
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.74 times more return on investment than TELECOM ITALIA. However, UNIQA INSURANCE GR is 1.35 times less risky than TELECOM ITALIA. It trades about 0.1 of its potential returns per unit of risk. TELECOM ITALIA is currently generating about 0.04 per unit of risk. If you would invest 1,252 in UNIQA INSURANCE GR on August 24, 2025 and sell it today you would earn a total of 134.00 from holding UNIQA INSURANCE GR or generate 10.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. TELECOM ITALIA
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| TELECOM ITALIA |
UNIQA INSURANCE and TELECOM ITALIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and TELECOM ITALIA
The main advantage of trading using opposite UNIQA INSURANCE and TELECOM ITALIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, TELECOM ITALIA 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 TELECOM ITALIA will offset losses from the drop in TELECOM ITALIA's long position.| UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Apple Inc | UNIQA INSURANCE vs. Microsoft | UNIQA INSURANCE vs. Microsoft |
| TELECOM ITALIA vs. REMEDY ENTERTAINMENT OYJ | TELECOM ITALIA vs. ATOSS SOFTWARE | TELECOM ITALIA vs. SBM OFFSHORE | TELECOM ITALIA vs. GBS Software AG |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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