Correlation Between UNIQA INSURANCE and Amgen

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

By analyzing existing cross correlation between UNIQA INSURANCE GR and Amgen Inc, you can compare the effects of market volatilities on UNIQA INSURANCE and Amgen 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 Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Amgen.

Diversification Opportunities for UNIQA INSURANCE and Amgen

-0.49

Correlation Coefficient

UNIQA INSURANCE  Amgen

Very good diversification

The 3 months correlation between UNIQA and Amgen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 GR are associated (or correlated) with Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of UNIQA INSURANCE i.e., UNIQA INSURANCE and Amgen go up and down completely randomly.

Pair Corralation between UNIQA INSURANCE and Amgen

Assuming the 90 days trading horizon UNIQA INSURANCE GR is expected to generate 0.67 times more return on investment than Amgen. However, UNIQA INSURANCE GR is 1.5 times less risky than Amgen. It trades about 0.11 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.13 per unit of risk. If you would invest  733.00  in UNIQA INSURANCE GR on October 11, 2024 and sell it today you would earn a total of  51.00  from holding UNIQA INSURANCE GR or generate 6.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

UNIQA INSURANCE GR  vs.  Amgen Inc

UNIQA INSURANCE GR

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, UNIQA INSURANCE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Amgen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amgen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with UNIQA INSURANCE and Amgen

The main advantage of trading using opposite UNIQA INSURANCE and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.

The idea behind UNIQA INSURANCE GR and Amgen Inc 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.