Correlation Between UNIQA Insurance and Oberbank
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Oberbank 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 Oberbank 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 Oberbank AG, you can compare the effects of market volatilities on UNIQA Insurance and Oberbank 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 Oberbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Oberbank.
Diversification Opportunities for UNIQA Insurance and Oberbank
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Oberbank is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Oberbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberbank 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 Oberbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberbank AG has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Oberbank go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Oberbank
Assuming the 90 days trading horizon UNIQA Insurance is expected to generate 15.68 times less return on investment than Oberbank. In addition to that, UNIQA Insurance is 2.22 times more volatile than Oberbank AG. It trades about 0.0 of its total potential returns per unit of risk. Oberbank AG is currently generating about 0.13 per unit of volatility. If you would invest 6,100 in Oberbank AG on August 26, 2024 and sell it today you would earn a total of 960.00 from holding Oberbank AG or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Oberbank AG
Performance |
| Timeline |
| UNIQA Insurance Group |
| Oberbank AG |
UNIQA Insurance and Oberbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Oberbank
The main advantage of trading using opposite UNIQA Insurance and Oberbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Oberbank 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 Oberbank will offset losses from the drop in Oberbank's long position.| UNIQA Insurance vs. Erste Group Bank | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine AG | UNIQA Insurance vs. Oesterr Post AG |
| Oberbank vs. Semperit Aktiengesellschaft Holding | Oberbank vs. Oesterr Post AG | Oberbank vs. Voestalpine AG | Oberbank vs. Universal Music Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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