Correlation Between UNIQA INSURANCE and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE and Siemens Healthineers 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 Siemens Healthineers 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 Siemens Healthineers AG, you can compare the effects of market volatilities on UNIQA INSURANCE and Siemens Healthineers 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 Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Siemens Healthineers.
Diversification Opportunities for UNIQA INSURANCE and Siemens Healthineers
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and Siemens is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers 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 Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Siemens Healthineers go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Siemens Healthineers
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 1.72 times less return on investment than Siemens Healthineers. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 1.7 times less risky than Siemens Healthineers. It trades about 0.18 of its potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,212 in Siemens Healthineers AG on November 7, 2024 and sell it today you would earn a total of 274.00 from holding Siemens Healthineers AG or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Siemens Healthineers AG
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Siemens Healthineers |
UNIQA INSURANCE and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Siemens Healthineers
The main advantage of trading using opposite UNIQA INSURANCE and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Siemens Healthineers 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 Siemens Healthineers will offset losses from the drop in Siemens Healthineers' long position.| UNIQA INSURANCE vs. CVR Medical Corp | UNIQA INSURANCE vs. Inspire Medical Systems | UNIQA INSURANCE vs. Canon Marketing Japan | UNIQA INSURANCE vs. IMAGIN MEDICAL INC |
| Siemens Healthineers vs. PLANT VEDA FOODS | Siemens Healthineers vs. PREMIER FOODS | Siemens Healthineers vs. MONEYSUPERMARKET | Siemens Healthineers vs. Tyson Foods |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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