Correlation Between UNIQA Insurance and Banco Santander
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Banco Santander 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 Banco Santander 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 Banco Santander SA, you can compare the effects of market volatilities on UNIQA Insurance and Banco Santander 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 Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Banco Santander.
Diversification Opportunities for UNIQA Insurance and Banco Santander
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UNIQA and Banco is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Banco Santander SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander SA 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 Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander SA has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Banco Santander go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Banco Santander
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the Banco Santander. But the stock apears to be less risky and, when comparing its historical volatility, UNIQA Insurance Group is 2.27 times less risky than Banco Santander. The stock trades about -0.03 of its potential returns per unit of risk. The Banco Santander SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 440.00 in Banco Santander SA on August 30, 2024 and sell it today you would lose (4.00) from holding Banco Santander SA or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Banco Santander SA
Performance |
| Timeline |
| UNIQA Insurance Group |
| Banco Santander SA |
UNIQA Insurance and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Banco Santander
The main advantage of trading using opposite UNIQA Insurance and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander'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 |
| Banco Santander vs. RATH Aktiengesellschaft | Banco Santander vs. AT S Austria | Banco Santander vs. BAWAG Group AG | Banco Santander vs. Semperit Aktiengesellschaft Holding |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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