Correlation Between WIMFARM SA and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA 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 WIMFARM SA and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and Vienna Insurance Group, you can compare the effects of market volatilities on WIMFARM SA 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 WIMFARM SA with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Vienna Insurance.
Diversification Opportunities for WIMFARM SA and Vienna Insurance
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WIMFARM and Vienna is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and WIMFARM SA 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 WIMFARM SA EO 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 WIMFARM SA i.e., WIMFARM SA and Vienna Insurance go up and down completely randomly.
Pair Corralation between WIMFARM SA and Vienna Insurance
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Vienna Insurance. In addition to that, WIMFARM SA is 2.96 times more volatile than Vienna Insurance Group. It trades about -0.06 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.05 per unit of volatility. If you would invest 2,259 in Vienna Insurance Group on October 13, 2024 and sell it today you would earn a total of 771.00 from holding Vienna Insurance Group or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Vienna Insurance Group
Performance |
| Timeline |
| WIMFARM SA EO |
| Vienna Insurance |
WIMFARM SA and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Vienna Insurance
The main advantage of trading using opposite WIMFARM SA and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA 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.| WIMFARM SA vs. FORMPIPE SOFTWARE AB | WIMFARM SA vs. ADDUS HOMECARE | WIMFARM SA vs. Kingdee International Software | WIMFARM SA vs. USU Software AG |
| Vienna Insurance vs. GLOBUS MEDICAL A | Vienna Insurance vs. SPECTRAL MEDICAL | Vienna Insurance vs. SERI INDUSTRIAL EO | Vienna Insurance vs. ARDAGH METAL PACDL 0001 |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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