Correlation Between Uniper SE and Systemair
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Systemair 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 Uniper SE and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Systemair AB, you can compare the effects of market volatilities on Uniper SE and Systemair 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 Uniper SE with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Systemair.
Diversification Opportunities for Uniper SE and Systemair
Very good diversification
The 3 months correlation between Uniper and Systemair is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Uniper SE 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 Uniper SE are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Uniper SE i.e., Uniper SE and Systemair go up and down completely randomly.
Pair Corralation between Uniper SE and Systemair
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Systemair. In addition to that, Uniper SE is 1.45 times more volatile than Systemair AB. It trades about -0.08 of its total potential returns per unit of risk. Systemair AB is currently generating about 0.05 per unit of volatility. If you would invest 6,609 in Systemair AB on September 26, 2024 and sell it today you would earn a total of 2,321 from holding Systemair AB or generate 35.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
Uniper SE vs. Systemair AB
Performance |
| Timeline |
| Uniper SE |
| Systemair AB |
Uniper SE and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Systemair
The main advantage of trading using opposite Uniper SE and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
| Systemair vs. Uniper SE | Systemair vs. Mulberry Group PLC | Systemair vs. London Security Plc | Systemair 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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