Correlation Between Vienna Insurance and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on Vienna Insurance and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Liontrust Asset.
Diversification Opportunities for Vienna Insurance and Liontrust Asset
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vienna and Liontrust is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Liontrust Asset go up and down completely randomly.
Pair Corralation between Vienna Insurance and Liontrust Asset
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.26 times more return on investment than Liontrust Asset. However, Vienna Insurance Group is 3.87 times less risky than Liontrust Asset. It trades about 0.4 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.08 per unit of risk. If you would invest 3,040 in Vienna Insurance Group on November 3, 2024 and sell it today you would earn a total of 198.00 from holding Vienna Insurance Group or generate 6.51% 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. Liontrust Asset Management
Performance |
| Timeline |
| Vienna Insurance |
| Liontrust Asset Mana |
Vienna Insurance and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Liontrust Asset
The main advantage of trading using opposite Vienna Insurance and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Vienna Insurance vs. Catena Media PLC | Vienna Insurance vs. Hollywood Bowl Group | Vienna Insurance vs. One Media iP | Vienna Insurance vs. National Beverage Corp |
| Liontrust Asset vs. Charter Communications Cl | Liontrust Asset vs. Herald Investment Trust | Liontrust Asset vs. Vietnam Enterprise Investments | Liontrust Asset vs. Arrow Electronics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |