Correlation Between DAX Index and UNIQA Insurance
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By analyzing existing cross correlation between DAX Index and UNIQA Insurance Group, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and UNIQA Insurance.
Diversification Opportunities for DAX Index and UNIQA Insurance
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and UNIQA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and UNIQA Insurance go up and down completely randomly.
Pair Corralation between DAX Index and UNIQA Insurance
Assuming the 90 days trading horizon DAX Index is expected to generate 0.66 times more return on investment than UNIQA Insurance. However, DAX Index is 1.52 times less risky than UNIQA Insurance. It trades about 0.08 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 1,449,789 in DAX Index on September 3, 2024 and sell it today you would earn a total of 512,856 from holding DAX Index or generate 35.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.46% |
| Values | Daily Returns |
DAX Index vs. UNIQA Insurance Group
Performance |
| Timeline |
DAX Index and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
UNIQA Insurance Group
Pair trading matchups for UNIQA Insurance
Pair Trading with DAX Index and UNIQA Insurance
The main advantage of trading using opposite DAX Index and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| UNIQA Insurance vs. H FARM SPA | UNIQA Insurance vs. Soken Chemical Engineering | UNIQA Insurance vs. PTT Global Chemical | UNIQA Insurance vs. TITAN MACHINERY |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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