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
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between UNIQA and Komercni is 0.9. 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 is expected to generate 1.33 times less return on investment than Komercni Banka. In addition to that, UNIQA Insurance is 1.79 times more volatile than Komercni Banka AS. It trades about 0.14 of its total potential returns per unit of risk. Komercni Banka AS is currently generating about 0.32 per unit of volatility. If you would invest 85,300 in Komercni Banka AS on November 3, 2024 and sell it today you would earn a total of 3,800 from holding Komercni Banka AS or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| 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. Erste Group Bank | UNIQA Insurance vs. Moneta Money Bank | UNIQA Insurance vs. JT ARCH INVESTMENTS |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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