Correlation Between UNIQA Insurance and VERBUND AG
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and VERBUND AG 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 VERBUND AG 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 VERBUND AG, you can compare the effects of market volatilities on UNIQA Insurance and VERBUND AG 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 VERBUND AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and VERBUND AG.
Diversification Opportunities for UNIQA Insurance and VERBUND AG
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UNIQA and VERBUND is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and VERBUND AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERBUND 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 VERBUND AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERBUND AG has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and VERBUND AG go up and down completely randomly.
Pair Corralation between UNIQA Insurance and VERBUND AG
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.37 times more return on investment than VERBUND AG. However, UNIQA Insurance Group is 2.7 times less risky than VERBUND AG. It trades about -0.01 of its potential returns per unit of risk. VERBUND AG is currently generating about -0.02 per unit of risk. If you would invest 736.00 in UNIQA Insurance Group on August 27, 2024 and sell it today you would lose (2.00) from holding UNIQA Insurance Group or give up 0.27% 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. VERBUND AG
Performance |
| Timeline |
| UNIQA Insurance Group |
| VERBUND AG |
UNIQA Insurance and VERBUND AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and VERBUND AG
The main advantage of trading using opposite UNIQA Insurance and VERBUND AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, VERBUND AG 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 VERBUND AG will offset losses from the drop in VERBUND AG'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 |
| VERBUND AG vs. OMV Aktiengesellschaft | VERBUND AG vs. Voestalpine AG | VERBUND AG vs. Wienerberger AG | VERBUND AG vs. EVN 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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