Correlation Between Vienna Insurance and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Gaztransport 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 Gaztransport 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 Gaztransport et Technigaz, you can compare the effects of market volatilities on Vienna Insurance and Gaztransport 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 Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Gaztransport.
Diversification Opportunities for Vienna Insurance and Gaztransport
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vienna and Gaztransport is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz 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 Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Gaztransport go up and down completely randomly.
Pair Corralation between Vienna Insurance and Gaztransport
Assuming the 90 days trading horizon Vienna Insurance is expected to generate 2.01 times less return on investment than Gaztransport. But when comparing it to its historical volatility, Vienna Insurance Group is 2.82 times less risky than Gaztransport. It trades about 0.25 of its potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 13,300 in Gaztransport et Technigaz on October 11, 2024 and sell it today you would earn a total of 710.00 from holding Gaztransport et Technigaz or generate 5.34% 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. Gaztransport et Technigaz
Performance |
| Timeline |
| Vienna Insurance |
| Gaztransport et Technigaz |
Vienna Insurance and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Gaztransport
The main advantage of trading using opposite Vienna Insurance and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| Vienna Insurance vs. United States Steel | Vienna Insurance vs. Silver Bullet Data | Vienna Insurance vs. Ironveld Plc | Vienna Insurance vs. Impax Environmental Markets |
| Gaztransport vs. Caledonia Investments | Gaztransport vs. Livermore Investments Group | Gaztransport vs. Power Metal Resources | Gaztransport vs. Europa Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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