Correlation Between Bet At and UNIQA Insurance

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

By analyzing existing cross correlation between bet at home AG and UNIQA Insurance Group, you can compare the effects of market volatilities on Bet At 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 Bet At with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and UNIQA Insurance.

Diversification Opportunities for Bet At and UNIQA Insurance

0.7

Correlation Coefficient

Bet At  UNIQA Insurance

Poor diversification

The 3 months correlation between Bet and UNIQA is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and Bet At 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 bet at home 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 Group has no effect on the direction of Bet At i.e., Bet At and UNIQA Insurance go up and down completely randomly.

Pair Corralation between Bet At and UNIQA Insurance

Assuming the 90 days trading horizon bet at home AG is expected to under-perform the UNIQA Insurance. In addition to that, Bet At is 3.07 times more volatile than UNIQA Insurance Group. It trades about -0.15 of its total potential returns per unit of risk. UNIQA Insurance Group is currently generating about -0.12 per unit of volatility. If you would invest  766.00  in UNIQA Insurance Group on September 5, 2024 and sell it today you would lose (50.00) from holding UNIQA Insurance Group or give up 6.53% of portfolio value over 90 days.

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

bet at home AG  vs.  UNIQA Insurance Group

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Bet At and UNIQA Insurance

The main advantage of trading using opposite Bet At and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At 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 bet at home AG and UNIQA Insurance Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.