Correlation Between UNIQA Insurance and Swiss Life
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Swiss Life 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 Swiss Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIQA Insurance Group and Swiss Life Holding, you can compare the effects of market volatilities on UNIQA Insurance and Swiss Life 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 Swiss Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Swiss Life.
Diversification Opportunities for UNIQA Insurance and Swiss Life
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNIQA and Swiss is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Swiss Life Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Life Holding 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 Group are associated (or correlated) with Swiss Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Life Holding has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Swiss Life go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Swiss Life
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 10.47 times less return on investment than Swiss Life. But when comparing it to its historical volatility, UNIQA Insurance Group is 3.3 times less risky than Swiss Life. It trades about 0.04 of its potential returns per unit of risk. Swiss Life Holding is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,660 in Swiss Life Holding on September 5, 2024 and sell it today you would earn a total of 220.00 from holding Swiss Life Holding or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Swiss Life Holding
Performance |
| Timeline |
| UNIQA Insurance Group |
| Swiss Life Holding |
UNIQA Insurance and Swiss Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Swiss Life
The main advantage of trading using opposite UNIQA Insurance and Swiss Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Swiss Life 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 Swiss Life will offset losses from the drop in Swiss Life's long position.| UNIQA Insurance vs. Berkshire Hathaway | UNIQA Insurance vs. AXA SA | UNIQA Insurance vs. AXA SA | UNIQA Insurance vs. The Hartford Financial |
| Swiss Life vs. WisdomTree Investments | Swiss Life vs. AWILCO DRILLING PLC | Swiss Life vs. ECHO INVESTMENT ZY | Swiss Life vs. BORR DRILLING NEW |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |