Correlation Between ALBIS LEASING and UNIQA INSURANCE

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

By analyzing existing cross correlation between ALBIS LEASING AG and UNIQA INSURANCE GR, you can compare the effects of market volatilities on ALBIS LEASING 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 ALBIS LEASING with a short position of UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and UNIQA INSURANCE.

Diversification Opportunities for ALBIS LEASING and UNIQA INSURANCE

0.21

Correlation Coefficient

ALBIS LEASING  UNIQA INSURANCE

Modest diversification

The 3 months correlation between ALBIS and UNIQA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and UNIQA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA INSURANCE GR and ALBIS LEASING 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 ALBIS LEASING AG 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 GR has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and UNIQA INSURANCE go up and down completely randomly.

Pair Corralation between ALBIS LEASING and UNIQA INSURANCE

Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the UNIQA INSURANCE. But the stock apears to be less risky and, when comparing its historical volatility, ALBIS LEASING AG is 1.95 times less risky than UNIQA INSURANCE. The stock trades about -0.04 of its potential returns per unit of risk. The UNIQA INSURANCE GR is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest  768.00  in UNIQA INSURANCE GR on December 21, 2024 and sell it today you would earn a total of  177.00  from holding UNIQA INSURANCE GR or generate 23.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ALBIS LEASING AG  vs.  UNIQA INSURANCE GR

ALBIS LEASING AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days ALBIS LEASING AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, ALBIS LEASING is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

UNIQA INSURANCE GR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, UNIQA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALBIS LEASING and UNIQA INSURANCE

The main advantage of trading using opposite ALBIS LEASING and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING 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 ALBIS LEASING AG and UNIQA INSURANCE GR 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.