Correlation Between UNIQA Insurance and IMMOFINANZ
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and IMMOFINANZ 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 IMMOFINANZ 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 IMMOFINANZ AG, you can compare the effects of market volatilities on UNIQA Insurance and IMMOFINANZ 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 IMMOFINANZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and IMMOFINANZ.
Diversification Opportunities for UNIQA Insurance and IMMOFINANZ
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between UNIQA and IMMOFINANZ is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and IMMOFINANZ AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMMOFINANZ 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 IMMOFINANZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMMOFINANZ AG has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and IMMOFINANZ go up and down completely randomly.
Pair Corralation between UNIQA Insurance and IMMOFINANZ
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.34 times more return on investment than IMMOFINANZ. However, UNIQA Insurance Group is 2.91 times less risky than IMMOFINANZ. It trades about -0.1 of its potential returns per unit of risk. IMMOFINANZ AG is currently generating about -0.11 per unit of risk. If you would invest 827.00 in UNIQA Insurance Group on August 23, 2024 and sell it today you would lose (107.00) from holding UNIQA Insurance Group or give up 12.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. IMMOFINANZ AG
Performance |
| Timeline |
| UNIQA Insurance Group |
| IMMOFINANZ AG |
UNIQA Insurance and IMMOFINANZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and IMMOFINANZ
The main advantage of trading using opposite UNIQA Insurance and IMMOFINANZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, IMMOFINANZ 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 IMMOFINANZ will offset losses from the drop in IMMOFINANZ's long position.| UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Oesterr Post AG | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine AG |
| IMMOFINANZ vs. CA Immobilien Anlagen | IMMOFINANZ vs. S IMMO AG | IMMOFINANZ vs. Voestalpine AG | IMMOFINANZ vs. Raiffeisen Bank International |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |