Correlation Between UNIQA INSURANCE and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and BANKINTER ADR 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 BANKINTER ADR 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 BANKINTER ADR 2007, you can compare the effects of market volatilities on UNIQA INSURANCE and BANKINTER ADR 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 BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and BANKINTER ADR.
Diversification Opportunities for UNIQA INSURANCE and BANKINTER ADR
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UNIQA and BANKINTER is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and BANKINTER ADR 2007 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANKINTER ADR 2007 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 BANKINTER ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANKINTER ADR 2007 has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and BANKINTER ADR go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and BANKINTER ADR
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 2.85 times less return on investment than BANKINTER ADR. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 2.74 times less risky than BANKINTER ADR. It trades about 0.05 of its potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 514.00 in BANKINTER ADR 2007 on October 16, 2024 and sell it today you would earn a total of 256.00 from holding BANKINTER ADR 2007 or generate 49.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. BANKINTER ADR 2007
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| BANKINTER ADR 2007 |
UNIQA INSURANCE and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and BANKINTER ADR
The main advantage of trading using opposite UNIQA INSURANCE and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, BANKINTER ADR 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 BANKINTER ADR will offset losses from the drop in BANKINTER ADR's long position.| UNIQA INSURANCE vs. CITY OFFICE REIT | UNIQA INSURANCE vs. DFS Furniture PLC | UNIQA INSURANCE vs. Hisense Home Appliances | UNIQA INSURANCE vs. Gol Intelligent Airlines |
| BANKINTER ADR vs. Sterling Construction | BANKINTER ADR vs. AWILCO DRILLING PLC | BANKINTER ADR vs. PURETECH HEALTH PLC | BANKINTER ADR vs. WESANA HEALTH HOLD |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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