Correlation Between UNIQA Insurance and Oesterr Post
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Oesterr Post 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 Oesterr Post 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 Oesterr Post AG, you can compare the effects of market volatilities on UNIQA Insurance and Oesterr Post 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 Oesterr Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Oesterr Post.
Diversification Opportunities for UNIQA Insurance and Oesterr Post
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and Oesterr is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Oesterr Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oesterr Post 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 Oesterr Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oesterr Post AG has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Oesterr Post go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Oesterr Post
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the Oesterr Post. But the stock apears to be less risky and, when comparing its historical volatility, UNIQA Insurance Group is 1.04 times less risky than Oesterr Post. The stock trades about -0.05 of its potential returns per unit of risk. The Oesterr Post AG is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,995 in Oesterr Post AG on August 27, 2024 and sell it today you would lose (100.00) from holding Oesterr Post AG or give up 3.34% 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. Oesterr Post AG
Performance |
| Timeline |
| UNIQA Insurance Group |
| Oesterr Post AG |
UNIQA Insurance and Oesterr Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Oesterr Post
The main advantage of trading using opposite UNIQA Insurance and Oesterr Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Oesterr Post 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 Oesterr Post will offset losses from the drop in Oesterr Post'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 |
| Oesterr Post vs. Voestalpine AG | Oesterr Post vs. OMV Aktiengesellschaft | Oesterr Post vs. UNIQA Insurance Group | Oesterr Post vs. VERBUND 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |