Correlation Between UNIQA Insurance and Andritz AG
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Andritz AG 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 Andritz AG 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 Andritz AG, you can compare the effects of market volatilities on UNIQA Insurance and Andritz AG 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 Andritz AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Andritz AG.
Diversification Opportunities for UNIQA Insurance and Andritz AG
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and Andritz is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Andritz AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andritz AG 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 Andritz AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andritz AG has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Andritz AG go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Andritz AG
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 1.28 times less return on investment than Andritz AG. But when comparing it to its historical volatility, UNIQA Insurance Group is 1.66 times less risky than Andritz AG. It trades about 0.01 of its potential returns per unit of risk. Andritz AG is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,410 in Andritz AG on August 30, 2024 and sell it today you would lose (105.00) from holding Andritz AG or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Andritz AG
Performance |
| Timeline |
| UNIQA Insurance Group |
| Andritz AG |
UNIQA Insurance and Andritz AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Andritz AG
The main advantage of trading using opposite UNIQA Insurance and Andritz AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Andritz AG 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 Andritz AG will offset losses from the drop in Andritz AG's long position.| UNIQA Insurance vs. Oesterr Post AG | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine AG | UNIQA Insurance vs. OMV Aktiengesellschaft |
| Andritz AG vs. Voestalpine AG | Andritz AG vs. VERBUND AG | Andritz AG vs. OMV Aktiengesellschaft | Andritz AG vs. Wienerberger AG |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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