Correlation Between Vienna Insurance and Sydbank
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Sydbank 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 Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vienna Insurance Group and Sydbank, you can compare the effects of market volatilities on Vienna Insurance and Sydbank 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 Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Sydbank.
Diversification Opportunities for Vienna Insurance and Sydbank
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vienna and Sydbank is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank 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 Group are associated (or correlated) with Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Sydbank go up and down completely randomly.
Pair Corralation between Vienna Insurance and Sydbank
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.6 times more return on investment than Sydbank. However, Vienna Insurance Group is 1.67 times less risky than Sydbank. It trades about 0.19 of its potential returns per unit of risk. Sydbank is currently generating about 0.07 per unit of risk. If you would invest 2,900 in Vienna Insurance Group on September 24, 2024 and sell it today you would earn a total of 108.00 from holding Vienna Insurance Group or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. Sydbank
Performance |
| Timeline |
| Vienna Insurance |
| Sydbank |
Vienna Insurance and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Sydbank
The main advantage of trading using opposite Vienna Insurance and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| Vienna Insurance vs. Uniper SE | Vienna Insurance vs. Mulberry Group PLC | Vienna Insurance vs. London Security Plc | Vienna Insurance vs. Triad Group PLC |
| Sydbank vs. Symphony Environmental Technologies | Sydbank vs. Endeavour Mining Corp | Sydbank vs. Vienna Insurance Group | Sydbank vs. GoldMining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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