Correlation Between UNIQA Insurance and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Komercni Banka 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 Komercni Banka 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 Komercni Banka AS, you can compare the effects of market volatilities on UNIQA Insurance and Komercni Banka 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 Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Komercni Banka.
Diversification Opportunities for UNIQA Insurance and Komercni Banka
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UNIQA and Komercni is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Komercni Banka AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka 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 Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka AS has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Komercni Banka go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Komercni Banka
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the Komercni Banka. But the stock apears to be less risky and, when comparing its historical volatility, UNIQA Insurance Group is 1.05 times less risky than Komercni Banka. The stock trades about -0.1 of its potential returns per unit of risk. The Komercni Banka AS is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 77,350 in Komercni Banka AS on August 31, 2024 and sell it today you would earn a total of 4,750 from holding Komercni Banka AS or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Komercni Banka AS
Performance |
| Timeline |
| UNIQA Insurance Group |
| Komercni Banka AS |
UNIQA Insurance and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Komercni Banka
The main advantage of trading using opposite UNIQA Insurance and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. JT ARCH INVESTMENTS | UNIQA Insurance vs. Erste Group Bank |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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