Correlation Between Abrdn PLC and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Abrdn PLC 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 Abrdn PLC and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn PLC and Vienna Insurance Group, you can compare the effects of market volatilities on Abrdn PLC 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 Abrdn PLC with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn PLC and Vienna Insurance.
Diversification Opportunities for Abrdn PLC and Vienna Insurance
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Abrdn and Vienna is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn PLC and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Abrdn PLC 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 Abrdn PLC 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 Abrdn PLC i.e., Abrdn PLC and Vienna Insurance go up and down completely randomly.
Pair Corralation between Abrdn PLC and Vienna Insurance
Assuming the 90 days trading horizon Abrdn PLC is expected to generate 1.66 times less return on investment than Vienna Insurance. In addition to that, Abrdn PLC is 1.44 times more volatile than Vienna Insurance Group. It trades about 0.03 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.08 per unit of volatility. If you would invest 2,905 in Vienna Insurance Group on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Vienna Insurance Group or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn PLC vs. Vienna Insurance Group
Performance |
| Timeline |
| Abrdn PLC |
| Vienna Insurance |
Abrdn PLC and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn PLC and Vienna Insurance
The main advantage of trading using opposite Abrdn PLC and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn PLC 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.| Abrdn PLC vs. JB Hunt Transport | Abrdn PLC vs. Kaufman Et Broad | Abrdn PLC vs. Fevertree Drinks Plc | Abrdn PLC vs. Molson Coors Beverage |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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