Correlation Between Haier Smart and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Haier Smart 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 Haier Smart and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and VIENNA INSURANCE GR, you can compare the effects of market volatilities on Haier Smart 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 Haier Smart with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and VIENNA INSURANCE.
Diversification Opportunities for Haier Smart and VIENNA INSURANCE
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Haier and VIENNA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and Haier Smart 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 Haier Smart Home 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 Haier Smart i.e., Haier Smart and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between Haier Smart and VIENNA INSURANCE
Assuming the 90 days trading horizon Haier Smart Home is expected to under-perform the VIENNA INSURANCE. In addition to that, Haier Smart is 3.54 times more volatile than VIENNA INSURANCE GR. It trades about -0.06 of its total potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.38 per unit of volatility. If you would invest 3,000 in VIENNA INSURANCE GR on October 20, 2024 and sell it today you would earn a total of 80.00 from holding VIENNA INSURANCE GR or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| Haier Smart Home |
| VIENNA INSURANCE |
Haier Smart and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and VIENNA INSURANCE
The main advantage of trading using opposite Haier Smart and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart 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.| Haier Smart vs. Materialise NV | Haier Smart vs. WT OFFSHORE | Haier Smart vs. CanSino Biologics | Haier Smart vs. APPLIED MATERIALS |
| VIENNA INSURANCE vs. Western Copper and | VIENNA INSURANCE vs. ARDAGH METAL PACDL 0001 | VIENNA INSURANCE vs. Haier Smart Home | VIENNA INSURANCE vs. CITY OFFICE REIT |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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