Correlation Between UNIQA Insurance and KARO INVEST
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and KARO INVEST 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 KARO INVEST 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 KARO INVEST as, you can compare the effects of market volatilities on UNIQA Insurance and KARO INVEST 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 KARO INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and KARO INVEST.
Diversification Opportunities for UNIQA Insurance and KARO INVEST
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between UNIQA and KARO is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and KARO INVEST as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KARO INVEST as 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 KARO INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KARO INVEST as has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and KARO INVEST go up and down completely randomly.
Pair Corralation between UNIQA Insurance and KARO INVEST
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.55 times more return on investment than KARO INVEST. However, UNIQA Insurance Group is 1.81 times less risky than KARO INVEST. It trades about 0.03 of its potential returns per unit of risk. KARO INVEST as is currently generating about 0.01 per unit of risk. If you would invest 18,794 in UNIQA Insurance Group on November 19, 2024 and sell it today you would earn a total of 2,846 from holding UNIQA Insurance Group or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.79% |
| Values | Daily Returns |
UNIQA Insurance Group vs. KARO INVEST as
Performance |
| Timeline |
| UNIQA Insurance Group |
| KARO INVEST as |
UNIQA Insurance and KARO INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and KARO INVEST
The main advantage of trading using opposite UNIQA Insurance and KARO INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, KARO INVEST 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 KARO INVEST will offset losses from the drop in KARO INVEST's long position.| UNIQA Insurance vs. Erste Group Bank | UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Raiffeisen Bank International |
| KARO INVEST vs. Erste Group Bank | KARO INVEST vs. UNIQA Insurance Group | KARO INVEST vs. JT ARCH INVESTMENTS | KARO INVEST vs. Komercni Banka AS |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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