Correlation Between Vienna Insurance and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Halyk Bank 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 Halyk Bank 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 Halyk Bank of, you can compare the effects of market volatilities on Vienna Insurance and Halyk Bank 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 Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Halyk Bank.
Diversification Opportunities for Vienna Insurance and Halyk Bank
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vienna and Halyk is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank 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 Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Halyk Bank go up and down completely randomly.
Pair Corralation between Vienna Insurance and Halyk Bank
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.6 times more return on investment than Halyk Bank. However, Vienna Insurance Group is 1.66 times less risky than Halyk Bank. It trades about 0.4 of its potential returns per unit of risk. Halyk Bank of is currently generating about -0.29 per unit of risk. If you would invest 3,043 in Vienna Insurance Group on November 5, 2024 and sell it today you would earn a total of 195.00 from holding Vienna Insurance Group or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. Halyk Bank of
Performance |
| Timeline |
| Vienna Insurance |
| Halyk Bank |
Vienna Insurance and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Halyk Bank
The main advantage of trading using opposite Vienna Insurance and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Halyk Bank 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 Halyk Bank will offset losses from the drop in Halyk Bank's long position.| Vienna Insurance vs. Nordic Semiconductor ASA | Vienna Insurance vs. Fair Oaks Income | Vienna Insurance vs. MT Bank Corp | Vienna Insurance vs. Norwegian Air Shuttle |
| Halyk Bank vs. Verizon Communications | Halyk Bank vs. Abingdon Health Plc | Halyk Bank vs. Primary Health Properties | Halyk Bank vs. Eco Animal Health |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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