Correlation Between UNIQA Insurance and Lundin Mining

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

By analyzing existing cross correlation between UNIQA Insurance Group and Lundin Mining Corp, you can compare the effects of market volatilities on UNIQA Insurance and Lundin Mining 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 Lundin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Lundin Mining.

Diversification Opportunities for UNIQA Insurance and Lundin Mining

0.69

Correlation Coefficient

UNIQA Insurance  Lundin Mining

Poor diversification

The 3 months correlation between UNIQA and Lundin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Lundin Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Mining Corp 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 Group are associated (or correlated) with Lundin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Mining Corp has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Lundin Mining go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Lundin Mining

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.71 times more return on investment than Lundin Mining. However, UNIQA Insurance Group is 1.41 times less risky than Lundin Mining. It trades about 0.21 of its potential returns per unit of risk. Lundin Mining Corp is currently generating about 0.14 per unit of risk. If you would invest  1,022  in UNIQA Insurance Group on May 7, 2025 and sell it today you would earn a total of  227.00  from holding UNIQA Insurance Group or generate 22.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

UNIQA Insurance Group  vs.  Lundin Mining Corp

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 16 (%) 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.

Lundin Mining Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lundin Mining Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Lundin Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with UNIQA Insurance and Lundin Mining

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

The idea behind UNIQA Insurance Group and Lundin Mining Corp 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.