Correlation Between UNIQA INSURANCE and Lockheed Martin

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

Diversification Opportunities for UNIQA INSURANCE and Lockheed Martin

-0.05

Correlation Coefficient

UNIQA INSURANCE  Lockheed Martin

Good diversification

The 3 months correlation between UNIQA and Lockheed is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Lockheed Martin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lockheed Martin 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 Lockheed Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lockheed Martin has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Lockheed Martin go up and down completely randomly.

Pair Corralation between UNIQA INSURANCE and Lockheed Martin

Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 1.27 times more return on investment than Lockheed Martin. However, UNIQA INSURANCE is 1.27 times more volatile than Lockheed Martin. It trades about 0.18 of its potential returns per unit of risk. Lockheed Martin is currently generating about 0.01 per unit of risk. If you would invest  942.00  in UNIQA INSURANCE GR on April 20, 2025 and sell it today you would earn a total of  232.00  from holding UNIQA INSURANCE GR or generate 24.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

UNIQA INSURANCE GR  vs.  Lockheed Martin

UNIQA INSURANCE GR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, UNIQA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Lockheed Martin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lockheed Martin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Lockheed Martin 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 Lockheed Martin

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

The idea behind UNIQA INSURANCE GR and Lockheed Martin 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..