Correlation Between UNIQA Insurance and Valneva SE

Can any of the company-specific risk be diversified away by investing in both UNIQA Insurance and Valneva SE 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 Valneva SE 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 Valneva SE, you can compare the effects of market volatilities on UNIQA Insurance and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA Insurance and Valneva SE.

Diversification Opportunities for UNIQA Insurance and Valneva SE

0.57

Correlation Coefficient

UNIQA Insurance  Valneva SE

Very weak diversification

The 3 months correlation between UNIQA and Valneva is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Valneva SE go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Valneva SE

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 0.19 times more return on investment than Valneva SE. However, UNIQA Insurance Group is 5.29 times less risky than Valneva SE. It trades about -0.01 of its potential returns per unit of risk. Valneva SE is currently generating about -0.07 per unit of risk. If you would invest  744.00  in UNIQA Insurance Group on September 12, 2024 and sell it today you would lose (17.00) from holding UNIQA Insurance Group or give up 2.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.72%
Values	Daily Returns

UNIQA Insurance Group  vs.  Valneva SE

UNIQA Insurance Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNIQA Insurance Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, UNIQA Insurance is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Valneva SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Valneva SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with UNIQA Insurance and Valneva SE

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

The idea behind UNIQA Insurance Group and Valneva SE 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..