Correlation Between UNIQA Insurance and CA Immobilien
Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and CA Immobilien 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 CA Immobilien 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 CA Immobilien Anlagen, you can compare the effects of market volatilities on UNIQA Insurance and CA Immobilien 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 CA Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and CA Immobilien.
Diversification Opportunities for UNIQA Insurance and CA Immobilien
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNIQA and CAI is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and CA Immobilien Anlagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Immobilien Anlagen 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 CA Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Immobilien Anlagen has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and CA Immobilien go up and down completely randomly.
Pair Corralation between UNIQA Insurance and CA Immobilien
Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.26 times more return on investment than CA Immobilien. However, UNIQA Insurance Group is 3.82 times less risky than CA Immobilien. It trades about -0.03 of its potential returns per unit of risk. CA Immobilien Anlagen is currently generating about -0.06 per unit of risk. If you would invest 749.00 in UNIQA Insurance Group on September 14, 2024 and sell it today you would lose (10.00) from holding UNIQA Insurance Group or give up 1.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
UNIQA Insurance Group vs. CA Immobilien Anlagen
Performance |
Timeline |
UNIQA Insurance Group |
CA Immobilien Anlagen |
UNIQA Insurance and CA Immobilien Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNIQA Insurance and CA Immobilien
The main advantage of trading using opposite UNIQA Insurance and CA Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA Insurance position performs unexpectedly, CA Immobilien 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 CA Immobilien will offset losses from the drop in CA Immobilien's long position.UNIQA Insurance vs. Vienna Insurance Group | UNIQA Insurance vs. Oesterr Post AG | UNIQA Insurance vs. Raiffeisen Bank International | UNIQA Insurance vs. Voestalpine AG |
CA Immobilien vs. IMMOFINANZ AG | CA Immobilien vs. Wienerberger AG | CA Immobilien vs. Vienna Insurance Group | CA Immobilien vs. Oesterr Post 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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