Correlation Between SBM Offshore and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both SBM Offshore 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 SBM Offshore and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBM Offshore NV and UNIQA Insurance Group, you can compare the effects of market volatilities on SBM Offshore 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 SBM Offshore with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and UNIQA Insurance.
Diversification Opportunities for SBM Offshore and UNIQA Insurance
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SBM and UNIQA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV 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 SBM Offshore 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 SBM Offshore NV 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 SBM Offshore i.e., SBM Offshore and UNIQA Insurance go up and down completely randomly.
Pair Corralation between SBM Offshore and UNIQA Insurance
Assuming the 90 days trading horizon SBM Offshore NV is expected to generate 1.54 times more return on investment than UNIQA Insurance. However, SBM Offshore is 1.54 times more volatile than UNIQA Insurance Group. It trades about 0.24 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 1,653 in SBM Offshore NV on August 28, 2024 and sell it today you would earn a total of 109.00 from holding SBM Offshore NV or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM Offshore NV vs. UNIQA Insurance Group
Performance |
| Timeline |
| SBM Offshore NV |
| UNIQA Insurance Group |
SBM Offshore and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and UNIQA Insurance
The main advantage of trading using opposite SBM Offshore and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore 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.| SBM Offshore vs. Semperit Aktiengesellschaft Holding | SBM Offshore vs. Oesterr Post AG | SBM Offshore vs. Voestalpine AG | SBM Offshore vs. Universal Music 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |