Correlation Between UNIQA Insurance and SAB Finance
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and SAB Finance 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 SAB Finance 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 SAB Finance as, you can compare the effects of market volatilities on UNIQA Insurance and SAB Finance 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 SAB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and SAB Finance.
Diversification Opportunities for UNIQA Insurance and SAB Finance
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UNIQA and SAB is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and SAB Finance as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAB Finance 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 SAB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAB Finance as has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and SAB Finance go up and down completely randomly.
Pair Corralation between UNIQA Insurance and SAB Finance
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 1.12 times more return on investment than SAB Finance. However, UNIQA Insurance is 1.12 times more volatile than SAB Finance as. It trades about 0.18 of its potential returns per unit of risk. SAB Finance as is currently generating about 0.0 per unit of risk. If you would invest 20,700 in UNIQA Insurance Group on November 29, 2024 and sell it today you would earn a total of 780.00 from holding UNIQA Insurance Group or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. SAB Finance as
Performance |
| Timeline |
| UNIQA Insurance Group |
| SAB Finance as |
UNIQA Insurance and SAB Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and SAB Finance
The main advantage of trading using opposite UNIQA Insurance and SAB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, SAB Finance 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 SAB Finance will offset losses from the drop in SAB Finance's long position.| UNIQA Insurance vs. Moneta Money Bank | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Komercni Banka AS |
| SAB Finance vs. UNIQA Insurance Group | SAB Finance vs. Erste Group Bank | SAB Finance vs. Moneta Money Bank | SAB Finance vs. JT ARCH INVESTMENTS |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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