Correlation Between Heavitree Brewery and UNIQA Insurance

Can any of the company-specific risk be diversified away by investing in both Heavitree Brewery and UNIQA Insurance 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 Heavitree Brewery and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Heavitree Brewery and UNIQA Insurance Group, you can compare the effects of market volatilities on Heavitree Brewery and UNIQA Insurance 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 Heavitree Brewery with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heavitree Brewery and UNIQA Insurance.

Diversification Opportunities for Heavitree Brewery and UNIQA Insurance

0.25

Correlation Coefficient

Heavitree Brewery  UNIQA Insurance

Modest diversification

The 3 months correlation between Heavitree and UNIQA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Heavitree Brewery and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and Heavitree Brewery 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 Heavitree Brewery are associated (or correlated) with UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of Heavitree Brewery i.e., Heavitree Brewery and UNIQA Insurance go up and down completely randomly.

Pair Corralation between Heavitree Brewery and UNIQA Insurance

Assuming the 90 days trading horizon Heavitree Brewery is expected to generate 15.46 times less return on investment than UNIQA Insurance. But when comparing it to its historical volatility, Heavitree Brewery is 9.8 times less risky than UNIQA Insurance. It trades about 0.13 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  955.00  in UNIQA Insurance Group on April 24, 2025 and sell it today you would earn a total of  206.00  from holding UNIQA Insurance Group or generate 21.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Heavitree Brewery  vs.  UNIQA Insurance Group

Heavitree Brewery

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Heavitree Brewery are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Heavitree Brewery is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

UNIQA Insurance Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA Insurance Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, UNIQA Insurance unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Heavitree Brewery and UNIQA Insurance

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

The idea behind Heavitree Brewery and UNIQA Insurance 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 Global Correlations module to find global opportunities by holding instruments from different markets.