Correlation Between VIRGIN WINES and Cincinnati Financial
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES and Cincinnati Financial 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 VIRGIN WINES and Cincinnati Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and Cincinnati Financial Corp, you can compare the effects of market volatilities on VIRGIN WINES and Cincinnati Financial 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 VIRGIN WINES with a short position of Cincinnati Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and Cincinnati Financial.
Diversification Opportunities for VIRGIN WINES and Cincinnati Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIRGIN and Cincinnati is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK and Cincinnati Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Financial Corp and VIRGIN WINES 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 VIRGIN WINES UK are associated (or correlated) with Cincinnati Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cincinnati Financial Corp has no effect on the direction of VIRGIN WINES i.e., VIRGIN WINES and Cincinnati Financial go up and down completely randomly.
Pair Corralation between VIRGIN WINES and Cincinnati Financial
If you would invest 9,091 in Cincinnati Financial Corp on October 16, 2024 and sell it today you would earn a total of 4,374 from holding Cincinnati Financial Corp or generate 48.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
VIRGIN WINES UK vs. Cincinnati Financial Corp
Performance |
| Timeline |
| VIRGIN WINES UK |
| Cincinnati Financial Corp |
VIRGIN WINES and Cincinnati Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and Cincinnati Financial
The main advantage of trading using opposite VIRGIN WINES and Cincinnati Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES position performs unexpectedly, Cincinnati Financial 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 Cincinnati Financial will offset losses from the drop in Cincinnati Financial's long position.| VIRGIN WINES vs. SWISS WATER DECAFFCOFFEE | VIRGIN WINES vs. Grand Canyon Education | VIRGIN WINES vs. Xinhua Winshare Publishing | VIRGIN WINES vs. Calibre Mining Corp |
| Cincinnati Financial vs. Geely Automobile Holdings | Cincinnati Financial vs. MYFAIR GOLD P | Cincinnati Financial vs. CARSALESCOM | Cincinnati Financial vs. DELTA AIR LINES |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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