Correlation Between Coloseum Holding and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Coloseum Holding 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 Coloseum Holding and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloseum Holding as and Vienna Insurance Group, you can compare the effects of market volatilities on Coloseum Holding 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 Coloseum Holding with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloseum Holding and Vienna Insurance.
Diversification Opportunities for Coloseum Holding and Vienna Insurance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coloseum and Vienna is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Coloseum Holding as and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Coloseum Holding 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 Coloseum Holding as 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 Coloseum Holding i.e., Coloseum Holding and Vienna Insurance go up and down completely randomly.
Pair Corralation between Coloseum Holding and Vienna Insurance
Assuming the 90 days trading horizon Coloseum Holding as is expected to under-perform the Vienna Insurance. In addition to that, Coloseum Holding is 4.7 times more volatile than Vienna Insurance Group. It trades about -0.2 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 75,500 in Vienna Insurance Group on August 29, 2024 and sell it today you would lose (900.00) from holding Vienna Insurance Group or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Coloseum Holding as vs. Vienna Insurance Group
Performance |
| Timeline |
| Coloseum Holding |
| Vienna Insurance |
Coloseum Holding and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloseum Holding and Vienna Insurance
The main advantage of trading using opposite Coloseum Holding and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloseum Holding 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.| Coloseum Holding vs. Vienna Insurance Group | Coloseum Holding vs. Komercni Banka AS | Coloseum Holding vs. UNIQA Insurance Group | Coloseum Holding vs. JT ARCH INVESTMENTS |
| Vienna Insurance vs. RMS Mezzanine AS | Vienna Insurance vs. Bezvavlasy as | Vienna Insurance vs. Primoco UAV SE | Vienna Insurance vs. Pilulka Lekarny as |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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