Correlation Between Vienna Insurance and Supermarket Income
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Supermarket Income 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 Supermarket Income 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 Supermarket Income REIT, you can compare the effects of market volatilities on Vienna Insurance and Supermarket Income 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 Supermarket Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Supermarket Income.
Diversification Opportunities for Vienna Insurance and Supermarket Income
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vienna and Supermarket is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Supermarket Income REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supermarket Income REIT 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 Supermarket Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supermarket Income REIT has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Supermarket Income go up and down completely randomly.
Pair Corralation between Vienna Insurance and Supermarket Income
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 1.07 times more return on investment than Supermarket Income. However, Vienna Insurance is 1.07 times more volatile than Supermarket Income REIT. It trades about 0.08 of its potential returns per unit of risk. Supermarket Income REIT is currently generating about 0.03 per unit of risk. If you would invest 2,905 in Vienna Insurance Group on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Vienna Insurance Group or generate 1.48% 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. Supermarket Income REIT
Performance |
| Timeline |
| Vienna Insurance |
| Supermarket Income REIT |
Vienna Insurance and Supermarket Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Supermarket Income
The main advantage of trading using opposite Vienna Insurance and Supermarket Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Supermarket Income 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 Supermarket Income will offset losses from the drop in Supermarket Income's long position.| Vienna Insurance vs. Hong Kong Land | Vienna Insurance vs. Neometals | Vienna Insurance vs. Coor Service Management | Vienna Insurance vs. Fidelity Sustainable USD |
| Supermarket Income vs. Hammerson PLC | Supermarket Income vs. Neometals | Supermarket Income vs. Coor Service Management | Supermarket Income vs. Fidelity Sustainable USD |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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