Correlation Between Vienna Insurance and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on Vienna Insurance and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Batm Advanced.
Diversification Opportunities for Vienna Insurance and Batm Advanced
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vienna and Batm is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Batm Advanced go up and down completely randomly.
Pair Corralation between Vienna Insurance and Batm Advanced
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.44 times more return on investment than Batm Advanced. However, Vienna Insurance Group is 2.26 times less risky than Batm Advanced. It trades about 0.3 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.08 per unit of risk. If you would invest 3,015 in Vienna Insurance Group on October 25, 2024 and sell it today you would earn a total of 118.00 from holding Vienna Insurance Group or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. Batm Advanced Communications
Performance |
| Timeline |
| Vienna Insurance |
| Batm Advanced Commun |
Vienna Insurance and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Batm Advanced
The main advantage of trading using opposite Vienna Insurance and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Vienna Insurance vs. Optima Health plc | Vienna Insurance vs. Polar Capital Technology | Vienna Insurance vs. Inspiration Healthcare Group | Vienna Insurance vs. International Biotechnology Trust |
| Batm Advanced vs. Alliance Data Systems | Batm Advanced vs. Ryanair Holdings plc | Batm Advanced vs. Extra Space Storage | Batm Advanced vs. Rosslyn Data Technologies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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