Correlation Between Kinnevik Investment and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment 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 Kinnevik Investment and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Vienna Insurance Group, you can compare the effects of market volatilities on Kinnevik Investment 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 Kinnevik Investment with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Vienna Insurance.
Diversification Opportunities for Kinnevik Investment and Vienna Insurance
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinnevik and Vienna is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Kinnevik Investment 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 Kinnevik Investment AB 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 Kinnevik Investment i.e., Kinnevik Investment and Vienna Insurance go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Vienna Insurance
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 3.11 times more return on investment than Vienna Insurance. However, Kinnevik Investment is 3.11 times more volatile than Vienna Insurance Group. It trades about 0.31 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.38 per unit of risk. If you would invest 7,655 in Kinnevik Investment AB on November 2, 2024 and sell it today you would earn a total of 1,188 from holding Kinnevik Investment AB or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Vienna Insurance Group
Performance |
| Timeline |
| Kinnevik Investment |
| Vienna Insurance |
Kinnevik Investment and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Vienna Insurance
The main advantage of trading using opposite Kinnevik Investment and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment 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.| Kinnevik Investment vs. Morgan Advanced Materials | Kinnevik Investment vs. Atresmedia | Kinnevik Investment vs. Zinc Media Group | Kinnevik Investment vs. Pets at Home |
| Vienna Insurance vs. Cairn Homes PLC | Vienna Insurance vs. Bankers Investment Trust | Vienna Insurance vs. DFS Furniture PLC | Vienna Insurance vs. Samsung Electronics Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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