Correlation Between Wiener Privatbank and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Wiener Privatbank and UNIQA Insurance 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 Wiener Privatbank and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiener Privatbank SE and UNIQA Insurance Group, you can compare the effects of market volatilities on Wiener Privatbank and UNIQA Insurance 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 Wiener Privatbank with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiener Privatbank and UNIQA Insurance.
Diversification Opportunities for Wiener Privatbank and UNIQA Insurance
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiener and UNIQA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wiener Privatbank SE and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and Wiener Privatbank 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 Wiener Privatbank SE are associated (or correlated) with UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of Wiener Privatbank i.e., Wiener Privatbank and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Wiener Privatbank and UNIQA Insurance
If you would invest 765.00 in Wiener Privatbank SE on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Wiener Privatbank SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wiener Privatbank SE vs. UNIQA Insurance Group
Performance |
| Timeline |
| Wiener Privatbank |
| UNIQA Insurance Group |
Wiener Privatbank and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiener Privatbank and UNIQA Insurance
The main advantage of trading using opposite Wiener Privatbank and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiener Privatbank position performs unexpectedly, UNIQA Insurance 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 UNIQA Insurance will offset losses from the drop in UNIQA Insurance's long position.| Wiener Privatbank vs. AMAG Austria Metall | Wiener Privatbank vs. UNIQA Insurance Group | Wiener Privatbank vs. BKS Bank AG | Wiener Privatbank vs. Vienna Insurance Group |
| UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Oesterr Post AG | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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