Correlation Between VIENNA INSURANCE and UNIQA INSURANCE

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

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

Diversification Opportunities for VIENNA INSURANCE and UNIQA INSURANCE

0.59

Correlation Coefficient

VIENNA INSURANCE  UNIQA INSURANCE

Very weak diversification

The 3 months correlation between VIENNA and UNIQA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR 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 VIENNA 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 VIENNA INSURANCE GR 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 VIENNA INSURANCE i.e., VIENNA INSURANCE and UNIQA INSURANCE go up and down completely randomly.

Pair Corralation between VIENNA INSURANCE and UNIQA INSURANCE

Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.99 times more return on investment than UNIQA INSURANCE. However, VIENNA INSURANCE GR is 1.01 times less risky than UNIQA INSURANCE. It trades about 0.39 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.32 per unit of risk. If you would invest  3,015  in VIENNA INSURANCE GR on December 23, 2024 and sell it today you would earn a total of  940.00  from holding VIENNA INSURANCE GR or generate 31.18% return on investment over 90 days.

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

VIENNA INSURANCE GR  vs.  UNIQA INSURANCE GR

VIENNA INSURANCE

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, VIENNA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 VIENNA INSURANCE and UNIQA INSURANCE

The main advantage of trading using opposite VIENNA INSURANCE and UNIQA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE 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 VIENNA INSURANCE GR 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.