Correlation Between UNIQA Insurance and St Galler
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and St Galler 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 St Galler 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 St Galler Kantonalbank, you can compare the effects of market volatilities on UNIQA Insurance and St Galler 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 St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and St Galler.
Diversification Opportunities for UNIQA Insurance and St Galler
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and 0QQZ is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank 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 St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and St Galler go up and down completely randomly.
Pair Corralation between UNIQA Insurance and St Galler
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the St Galler. In addition to that, UNIQA Insurance is 1.17 times more volatile than St Galler Kantonalbank. It trades about -0.05 of its total potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.02 per unit of volatility. If you would invest 43,550 in St Galler Kantonalbank on September 1, 2024 and sell it today you would lose (1,100) from holding St Galler Kantonalbank or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
UNIQA Insurance Group vs. St Galler Kantonalbank
Performance |
| Timeline |
| UNIQA Insurance Group |
| St Galler Kantonalbank |
UNIQA Insurance and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and St Galler
The main advantage of trading using opposite UNIQA Insurance and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| UNIQA Insurance vs. Uniper SE | UNIQA Insurance vs. Mulberry Group PLC | UNIQA Insurance vs. London Security Plc | UNIQA Insurance vs. Triad Group PLC |
| St Galler vs. Uniper SE | St Galler vs. Mulberry Group PLC | St Galler vs. London Security Plc | St Galler vs. Triad Group PLC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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