Correlation Between EVN AG and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both EVN AG 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 EVN AG and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVN AG and UNIQA Insurance Group, you can compare the effects of market volatilities on EVN AG 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 EVN AG with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVN AG and UNIQA Insurance.
Diversification Opportunities for EVN AG and UNIQA Insurance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EVN and UNIQA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding EVN 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 EVN AG 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 EVN 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 EVN AG i.e., EVN AG and UNIQA Insurance go up and down completely randomly.
Pair Corralation between EVN AG and UNIQA Insurance
Assuming the 90 days trading horizon EVN AG is expected to generate 1.19 times more return on investment than UNIQA Insurance. However, EVN AG is 1.19 times more volatile than UNIQA Insurance Group. It trades about 0.06 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 1,780 in EVN AG on August 30, 2024 and sell it today you would earn a total of 665.00 from holding EVN AG or generate 37.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVN AG vs. UNIQA Insurance Group
Performance |
| Timeline |
| EVN AG |
| UNIQA Insurance Group |
EVN AG and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVN AG and UNIQA Insurance
The main advantage of trading using opposite EVN AG and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVN AG 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.The idea behind EVN AG and UNIQA Insurance Group 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.| UNIQA Insurance vs. Oesterr Post AG | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine AG | UNIQA Insurance vs. OMV Aktiengesellschaft |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |