Correlation Between Exelon Corp and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Exelon Corp and Vienna 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 Exelon Corp and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelon Corp and Vienna Insurance Group, you can compare the effects of market volatilities on Exelon Corp and Vienna 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 Exelon Corp with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelon Corp and Vienna Insurance.
Diversification Opportunities for Exelon Corp and Vienna Insurance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Exelon and Vienna is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Exelon Corp and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Exelon Corp 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 Exelon Corp are associated (or correlated) with Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Exelon Corp i.e., Exelon Corp and Vienna Insurance go up and down completely randomly.
Pair Corralation between Exelon Corp and Vienna Insurance
Assuming the 90 days trading horizon Exelon Corp is expected to generate 1.07 times more return on investment than Vienna Insurance. However, Exelon Corp is 1.07 times more volatile than Vienna Insurance Group. It trades about 0.09 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.09 per unit of risk. If you would invest 3,765 in Exelon Corp on September 4, 2024 and sell it today you would earn a total of 80.00 from holding Exelon Corp or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exelon Corp vs. Vienna Insurance Group
Performance |
| Timeline |
| Exelon Corp |
| Vienna Insurance |
Exelon Corp and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exelon Corp and Vienna Insurance
The main advantage of trading using opposite Exelon Corp and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelon Corp position performs unexpectedly, Vienna 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Exelon Corp vs. Vienna Insurance Group | Exelon Corp vs. Alfa Financial Software | Exelon Corp vs. Zurich Insurance Group | Exelon Corp vs. Batm Advanced Communications |
| Vienna Insurance vs. Intermediate Capital Group | Vienna Insurance vs. Zoom Video Communications | Vienna Insurance vs. One Media iP | Vienna Insurance vs. Zinc Media Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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