Correlation Between Altair Engineering and UNIQA Insurance

Can any of the company-specific risk be diversified away by investing in both Altair Engineering 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 Altair Engineering and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altair Engineering and UNIQA Insurance Group, you can compare the effects of market volatilities on Altair Engineering 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 Altair Engineering with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and UNIQA Insurance.

Diversification Opportunities for Altair Engineering and UNIQA Insurance

-0.12

Correlation Coefficient

Altair Engineering  UNIQA Insurance

Good diversification

The 3 months correlation between Altair and UNIQA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering 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 Altair Engineering 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 Altair Engineering 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 Altair Engineering i.e., Altair Engineering and UNIQA Insurance go up and down completely randomly.

Pair Corralation between Altair Engineering and UNIQA Insurance

Assuming the 90 days horizon Altair Engineering is expected to generate 1.44 times less return on investment than UNIQA Insurance. But when comparing it to its historical volatility, Altair Engineering is 1.97 times less risky than UNIQA Insurance. It trades about 0.31 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  735.00  in UNIQA Insurance Group on September 26, 2024 and sell it today you would earn a total of  42.00  from holding UNIQA Insurance Group or generate 5.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Altair Engineering  vs.  UNIQA Insurance Group

Altair Engineering

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altair Engineering are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Altair Engineering reported solid returns over the last few months and may actually be approaching a breakup point.

UNIQA Insurance Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA Insurance Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, UNIQA Insurance is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Altair Engineering and UNIQA Insurance

The main advantage of trading using opposite Altair Engineering and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering 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.

The idea behind Altair Engineering and UNIQA Insurance Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.