Correlation Between AVITA Medical and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both AVITA Medical 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 AVITA Medical and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVITA Medical and VIENNA INSURANCE GR, you can compare the effects of market volatilities on AVITA Medical 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 AVITA Medical with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVITA Medical and VIENNA INSURANCE.
Diversification Opportunities for AVITA Medical and VIENNA INSURANCE
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AVITA and VIENNA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding AVITA Medical and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and AVITA Medical 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 AVITA Medical 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 AVITA Medical i.e., AVITA Medical and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between AVITA Medical and VIENNA INSURANCE
Assuming the 90 days trading horizon AVITA Medical is expected to generate 5.06 times more return on investment than VIENNA INSURANCE. However, AVITA Medical is 5.06 times more volatile than VIENNA INSURANCE GR. It trades about 0.05 of its potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.09 per unit of risk. If you would invest 120.00 in AVITA Medical on September 24, 2024 and sell it today you would earn a total of 104.00 from holding AVITA Medical or generate 86.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVITA Medical vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| AVITA Medical |
| VIENNA INSURANCE |
AVITA Medical and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVITA Medical and VIENNA INSURANCE
The main advantage of trading using opposite AVITA Medical and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVITA Medical 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.| AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc |
| VIENNA INSURANCE vs. CVW CLEANTECH INC | VIENNA INSURANCE vs. SCANDMEDICAL SOLDK 040 | VIENNA INSURANCE vs. Cleanaway Waste Management | VIENNA INSURANCE vs. AVITA Medical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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