Correlation Between Allianz SE and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Allianz SE 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 Allianz SE and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE VNA and UNIQA Insurance Group, you can compare the effects of market volatilities on Allianz SE 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 Allianz SE with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and UNIQA Insurance.
Diversification Opportunities for Allianz SE and UNIQA Insurance
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianz and UNIQA is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE VNA 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 Allianz 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 Allianz SE VNA 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 Allianz SE i.e., Allianz SE and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Allianz SE and UNIQA Insurance
Assuming the 90 days trading horizon Allianz SE VNA is expected to generate 0.82 times more return on investment than UNIQA Insurance. However, Allianz SE VNA is 1.23 times less risky than UNIQA Insurance. It trades about 0.1 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.01 per unit of risk. If you would invest 18,273 in Allianz SE VNA on September 2, 2024 and sell it today you would earn a total of 10,947 from holding Allianz SE VNA or generate 59.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Allianz SE VNA vs. UNIQA Insurance Group
Performance |
| Timeline |
| Allianz SE VNA |
| UNIQA Insurance Group |
Allianz SE and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and UNIQA Insurance
The main advantage of trading using opposite Allianz SE and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE 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.| Allianz SE vs. Silicon Motion Technology | Allianz SE vs. Soken Chemical Engineering | Allianz SE vs. TITAN MACHINERY | Allianz SE vs. AM EAGLE OUTFITTERS |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |