Correlation Between MYFAIR GOLD and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both MYFAIR GOLD 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 MYFAIR GOLD and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MYFAIR GOLD P and Vienna Insurance Group, you can compare the effects of market volatilities on MYFAIR GOLD 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 MYFAIR GOLD with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYFAIR GOLD and Vienna Insurance.
Diversification Opportunities for MYFAIR GOLD and Vienna Insurance
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MYFAIR and Vienna is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and MYFAIR GOLD 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 MYFAIR GOLD P 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 MYFAIR GOLD i.e., MYFAIR GOLD and Vienna Insurance go up and down completely randomly.
Pair Corralation between MYFAIR GOLD and Vienna Insurance
Assuming the 90 days horizon MYFAIR GOLD is expected to generate 1.2 times less return on investment than Vienna Insurance. In addition to that, MYFAIR GOLD is 2.41 times more volatile than Vienna Insurance Group. It trades about 0.02 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.06 per unit of volatility. If you would invest 2,264 in Vienna Insurance Group on October 29, 2024 and sell it today you would earn a total of 871.00 from holding Vienna Insurance Group or generate 38.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYFAIR GOLD P vs. Vienna Insurance Group
Performance |
| Timeline |
| MYFAIR GOLD P |
| Vienna Insurance |
MYFAIR GOLD and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYFAIR GOLD and Vienna Insurance
The main advantage of trading using opposite MYFAIR GOLD and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD 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.| MYFAIR GOLD vs. GREENX METALS LTD | MYFAIR GOLD vs. Kaiser Aluminum | MYFAIR GOLD vs. AMAG Austria Metall | MYFAIR GOLD vs. Applied Materials |
| Vienna Insurance vs. Ringmetall SE | Vienna Insurance vs. De Grey Mining | Vienna Insurance vs. Western Copper and | Vienna Insurance vs. Jacquet Metal Service |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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