Correlation Between UNIQA Insurance and Exor NV
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Exor NV 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 Exor NV 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 Exor NV, you can compare the effects of market volatilities on UNIQA Insurance and Exor NV 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 Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Exor NV.
Diversification Opportunities for UNIQA Insurance and Exor NV
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and Exor is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV 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 Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Exor NV go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Exor NV
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the Exor NV. But the stock apears to be less risky and, when comparing its historical volatility, UNIQA Insurance Group is 1.18 times less risky than Exor NV. The stock trades about -0.01 of its potential returns per unit of risk. The Exor NV is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,519 in Exor NV on September 1, 2024 and sell it today you would earn a total of 1,801 from holding Exor NV or generate 23.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Exor NV
Performance |
| Timeline |
| UNIQA Insurance Group |
| Exor NV |
UNIQA Insurance and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Exor NV
The main advantage of trading using opposite UNIQA Insurance and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Exor NV 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 Exor NV will offset losses from the drop in Exor NV'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 |
| Exor NV vs. RATH Aktiengesellschaft | Exor NV vs. Semperit Aktiengesellschaft Holding | Exor NV vs. Telekom Austria AG | Exor NV vs. Oesterr Post 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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