Correlation Between UNIQA INSURANCE and Axway Software
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Axway Software 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 UNIQA INSURANCE and Axway Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIQA INSURANCE GR and Axway Software SA, you can compare the effects of market volatilities on UNIQA INSURANCE and Axway Software 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 UNIQA INSURANCE with a short position of Axway Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Axway Software.
Diversification Opportunities for UNIQA INSURANCE and Axway Software
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Axway is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Axway Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axway Software SA and UNIQA INSURANCE 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 UNIQA INSURANCE GR are associated (or correlated) with Axway Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axway Software SA has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Axway Software go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Axway Software
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.46 times more return on investment than Axway Software. However, UNIQA INSURANCE GR is 2.19 times less risky than Axway Software. It trades about 0.68 of its potential returns per unit of risk. Axway Software SA is currently generating about -0.12 per unit of risk. If you would invest 743.00 in UNIQA INSURANCE GR on October 18, 2024 and sell it today you would earn a total of 54.00 from holding UNIQA INSURANCE GR or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Axway Software SA
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Axway Software SA |
UNIQA INSURANCE and Axway Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Axway Software
The main advantage of trading using opposite UNIQA INSURANCE and Axway Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Axway Software 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 Axway Software will offset losses from the drop in Axway Software's long position.| UNIQA INSURANCE vs. Fast Retailing Co | UNIQA INSURANCE vs. SPARTAN STORES | UNIQA INSURANCE vs. PICKN PAY STORES | UNIQA INSURANCE vs. Ross Stores |
| Axway Software vs. JSC Halyk bank | Axway Software vs. Computershare Limited | Axway Software vs. Webster Financial | Axway Software vs. UNIQA INSURANCE GR |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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