Correlation Between Compagnie Plastic and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic and Vienna Insurance 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 Compagnie Plastic and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and Vienna Insurance Group, you can compare the effects of market volatilities on Compagnie Plastic and Vienna Insurance 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 Compagnie Plastic with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Vienna Insurance.
Diversification Opportunities for Compagnie Plastic and Vienna Insurance
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compagnie and Vienna is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Compagnie Plastic 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 Compagnie Plastic Omnium are associated (or correlated) with Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Compagnie Plastic i.e., Compagnie Plastic and Vienna Insurance go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Vienna Insurance
Assuming the 90 days trading horizon Compagnie Plastic Omnium is expected to generate 3.48 times more return on investment than Vienna Insurance. However, Compagnie Plastic is 3.48 times more volatile than Vienna Insurance Group. It trades about 0.12 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.08 per unit of risk. If you would invest 923.00 in Compagnie Plastic Omnium on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Compagnie Plastic Omnium or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Vienna Insurance Group
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Vienna Insurance |
Compagnie Plastic and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Vienna Insurance
The main advantage of trading using opposite Compagnie Plastic and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Compagnie Plastic vs. Celebrus Technologies plc | Compagnie Plastic vs. Allianz Technology Trust | Compagnie Plastic vs. Futura Medical | Compagnie Plastic vs. Molson Coors Beverage |
| Vienna Insurance vs. Hong Kong Land | Vienna Insurance vs. Neometals | Vienna Insurance vs. Coor Service Management | Vienna Insurance 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |