Correlation Between UNIQA Insurance and Axis Bank

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

Diversification Opportunities for UNIQA Insurance and Axis Bank

0.09

Correlation Coefficient

UNIQA Insurance  Axis Bank

Significant diversification

The 3 months correlation between UNIQA and Axis is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA Insurance Group and Axis Bank Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axis Bank 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 Axis Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axis Bank has no effect on the direction of UNIQA Insurance i.e., UNIQA Insurance and Axis Bank go up and down completely randomly.

Pair Corralation between UNIQA Insurance and Axis Bank

Assuming the 90 days trading horizon UNIQA Insurance Group is expected to generate 1.13 times more return on investment than Axis Bank. However, UNIQA Insurance is 1.13 times more volatile than Axis Bank Ltd. It trades about 0.22 of its potential returns per unit of risk. Axis Bank Ltd is currently generating about -0.12 per unit of risk. If you would invest  946.00  in UNIQA Insurance Group on April 20, 2025 and sell it today you would earn a total of  229.00  from holding UNIQA Insurance Group or generate 24.21% return on investment over 90 days.

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

UNIQA Insurance Group  vs.  Axis Bank Ltd

UNIQA Insurance Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA Insurance Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, UNIQA Insurance unveiled solid returns over the last few months and may actually be approaching a breakup point.

Axis Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axis Bank Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with UNIQA Insurance and Axis Bank

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

The idea behind UNIQA Insurance Group and Axis Bank Ltd 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.