Correlation Between BKS Bank and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both BKS Bank 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 BKS Bank and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKS Bank AG and UNIQA Insurance Group, you can compare the effects of market volatilities on BKS Bank 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 BKS Bank with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKS Bank and UNIQA Insurance.
Diversification Opportunities for BKS Bank and UNIQA Insurance
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BKS and UNIQA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BKS Bank AG 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 BKS Bank 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 BKS Bank AG 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 BKS Bank i.e., BKS Bank and UNIQA Insurance go up and down completely randomly.
Pair Corralation between BKS Bank and UNIQA Insurance
Assuming the 90 days trading horizon BKS Bank AG is expected to generate 0.84 times more return on investment than UNIQA Insurance. However, BKS Bank AG is 1.2 times less risky than UNIQA Insurance. It trades about 0.05 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.02 per unit of risk. If you would invest 1,300 in BKS Bank AG on August 27, 2024 and sell it today you would earn a total of 180.00 from holding BKS Bank AG or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
BKS Bank AG vs. UNIQA Insurance Group
Performance |
| Timeline |
| BKS Bank AG |
| UNIQA Insurance Group |
BKS Bank and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKS Bank and UNIQA Insurance
The main advantage of trading using opposite BKS Bank and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKS Bank 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.| BKS Bank vs. Addiko Bank AG | BKS Bank vs. Oberbank AG | BKS Bank vs. AMAG Austria Metall | BKS Bank vs. UNIQA Insurance Group |
| UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Oesterr Post AG | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine AG |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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