Correlation Between UNIQA Insurance and Warimpex Finanz
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Warimpex Finanz 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 Warimpex Finanz 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 Warimpex Finanz und, you can compare the effects of market volatilities on UNIQA Insurance and Warimpex Finanz 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 Warimpex Finanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Warimpex Finanz.
Diversification Opportunities for UNIQA Insurance and Warimpex Finanz
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and Warimpex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Warimpex Finanz und in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warimpex Finanz und 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 Warimpex Finanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warimpex Finanz und has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Warimpex Finanz go up and down completely randomly.
Pair Corralation between UNIQA Insurance and Warimpex Finanz
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.18 times more return on investment than Warimpex Finanz. However, UNIQA Insurance Group is 5.44 times less risky than Warimpex Finanz. It trades about -0.03 of its potential returns per unit of risk. Warimpex Finanz und is currently generating about -0.1 per unit of risk. If you would invest 726.00 in UNIQA Insurance Group on August 30, 2024 and sell it today you would lose (5.00) from holding UNIQA Insurance Group or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA Insurance Group vs. Warimpex Finanz und
Performance |
| Timeline |
| UNIQA Insurance Group |
| Warimpex Finanz und |
UNIQA Insurance and Warimpex Finanz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA Insurance and Warimpex Finanz
The main advantage of trading using opposite UNIQA Insurance and Warimpex Finanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, Warimpex Finanz 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 Warimpex Finanz will offset losses from the drop in Warimpex Finanz'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 |
| Warimpex Finanz vs. IMMOFINANZ AG | Warimpex Finanz vs. Polytec Holding AG | Warimpex Finanz vs. S IMMO AG | Warimpex Finanz vs. Zumtobel 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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