Correlation Between AIR PRODCHEMICALS and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both AIR PRODCHEMICALS 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 AIR PRODCHEMICALS and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR PRODCHEMICALS and VIENNA INSURANCE GR, you can compare the effects of market volatilities on AIR PRODCHEMICALS 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 AIR PRODCHEMICALS with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR PRODCHEMICALS and VIENNA INSURANCE.
Diversification Opportunities for AIR PRODCHEMICALS and VIENNA INSURANCE
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIR and VIENNA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS 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 AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between AIR PRODCHEMICALS and VIENNA INSURANCE
Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to under-perform the VIENNA INSURANCE. In addition to that, AIR PRODCHEMICALS is 1.54 times more volatile than VIENNA INSURANCE GR. It trades about -0.05 of its total potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.05 per unit of volatility. If you would invest 2,990 in VIENNA INSURANCE GR on October 14, 2024 and sell it today you would earn a total of 55.00 from holding VIENNA INSURANCE GR or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIR PRODCHEMICALS vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| AIR PRODCHEMICALS |
| VIENNA INSURANCE |
AIR PRODCHEMICALS and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR PRODCHEMICALS and VIENNA INSURANCE
The main advantage of trading using opposite AIR PRODCHEMICALS and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS 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.| AIR PRODCHEMICALS vs. Coffee Holding Co | AIR PRODCHEMICALS vs. Scandinavian Tobacco Group | AIR PRODCHEMICALS vs. BRIT AMER TOBACCO | AIR PRODCHEMICALS vs. KOBE STEEL LTD |
| VIENNA INSURANCE vs. Darden Restaurants | VIENNA INSURANCE vs. FORMPIPE SOFTWARE AB | VIENNA INSURANCE vs. AXWAY SOFTWARE EO | VIENNA INSURANCE vs. AIR PRODCHEMICALS |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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