Correlation Between UNIQA Insurance and S IMMO
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and S IMMO 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 S IMMO 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 S IMMO AG, you can compare the effects of market volatilities on UNIQA Insurance and S IMMO 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 S IMMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and S IMMO.
Diversification Opportunities for UNIQA Insurance and S IMMO
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and SPI is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and S IMMO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S IMMO 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 S IMMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S IMMO AG has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and S IMMO go up and down completely randomly.
Pair Corralation between UNIQA Insurance and S IMMO
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to under-perform the S IMMO. In addition to that, UNIQA Insurance is 1.29 times more volatile than S IMMO AG. It trades about -0.1 of its total potential returns per unit of risk. S IMMO AG is currently generating about 0.02 per unit of volatility. If you would invest 2,180 in S IMMO AG on August 23, 2024 and sell it today you would earn a total of 30.00 from holding S IMMO AG or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. S IMMO AG
Performance |
| Timeline |
| UNIQA Insurance Group |
| S IMMO AG |
UNIQA Insurance and S IMMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and S IMMO
The main advantage of trading using opposite UNIQA Insurance and S IMMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, S IMMO 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 S IMMO will offset losses from the drop in S IMMO'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 |
| S IMMO vs. CA Immobilien Anlagen | S IMMO vs. UBM Development AG | S IMMO vs. AT S Austria | S IMMO vs. BAWAG Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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