Correlation Between Vienna Insurance and Silvercorp Metals
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Silvercorp Metals 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 Silvercorp Metals 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 Silvercorp Metals, you can compare the effects of market volatilities on Vienna Insurance and Silvercorp Metals 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 Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Silvercorp Metals.
Diversification Opportunities for Vienna Insurance and Silvercorp Metals
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vienna and Silvercorp is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals 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 Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Silvercorp Metals go up and down completely randomly.
Pair Corralation between Vienna Insurance and Silvercorp Metals
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.37 times more return on investment than Silvercorp Metals. However, Vienna Insurance Group is 2.71 times less risky than Silvercorp Metals. It trades about 0.21 of its potential returns per unit of risk. Silvercorp Metals is currently generating about -0.1 per unit of risk. If you would invest 2,948 in Vienna Insurance Group on October 12, 2024 and sell it today you would earn a total of 82.00 from holding Vienna Insurance Group or generate 2.78% 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. Silvercorp Metals
Performance |
| Timeline |
| Vienna Insurance |
| Silvercorp Metals |
Vienna Insurance and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Silvercorp Metals
The main advantage of trading using opposite Vienna Insurance and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| Vienna Insurance vs. Walmart | Vienna Insurance vs. BYD Co | Vienna Insurance vs. Volkswagen AG | Vienna Insurance vs. Volkswagen AG Non Vtg |
| Silvercorp Metals vs. Walmart | Silvercorp Metals vs. BYD Co | Silvercorp Metals vs. Volkswagen AG | Silvercorp Metals vs. Volkswagen AG Non Vtg |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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