Correlation Between UNIQA INSURANCE and OTP Bank
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and OTP Bank 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 OTP Bank 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 OTP Bank Nyrt, you can compare the effects of market volatilities on UNIQA INSURANCE and OTP Bank 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 OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and OTP Bank.
Diversification Opportunities for UNIQA INSURANCE and OTP Bank
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UNIQA and OTP is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and OTP Bank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank Nyrt 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 OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank Nyrt has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and OTP Bank go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and OTP Bank
Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.35 times more return on investment than OTP Bank. However, UNIQA INSURANCE GR is 2.83 times less risky than OTP Bank. It trades about 0.55 of its potential returns per unit of risk. OTP Bank Nyrt is currently generating about 0.08 per unit of risk. If you would invest 737.00 in UNIQA INSURANCE GR on October 12, 2024 and sell it today you would earn a total of 46.00 from holding UNIQA INSURANCE GR or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. OTP Bank Nyrt
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| OTP Bank Nyrt |
UNIQA INSURANCE and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and OTP Bank
The main advantage of trading using opposite UNIQA INSURANCE and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, OTP Bank 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 OTP Bank will offset losses from the drop in OTP Bank's long position.| UNIQA INSURANCE vs. SPORTING | UNIQA INSURANCE vs. Constellation Software | UNIQA INSURANCE vs. NTG Nordic Transport | UNIQA INSURANCE vs. BII Railway Transportation |
| OTP Bank vs. Ameriprise Financial | OTP Bank vs. UNIQA INSURANCE GR | OTP Bank vs. PLAYTECH | OTP Bank vs. PLAY2CHILL SA ZY |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |