Correlation Between Meta Financial and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both Meta Financial 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 Meta Financial and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Financial Group and VIENNA INSURANCE GR, you can compare the effects of market volatilities on Meta Financial 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 Meta Financial with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Financial and VIENNA INSURANCE.
Diversification Opportunities for Meta Financial and VIENNA INSURANCE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meta and VIENNA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Meta Financial Group and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and Meta Financial 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 Meta Financial Group 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 Meta Financial i.e., Meta Financial and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between Meta Financial and VIENNA INSURANCE
Assuming the 90 days horizon Meta Financial Group is expected to generate 2.33 times more return on investment than VIENNA INSURANCE. However, Meta Financial is 2.33 times more volatile than VIENNA INSURANCE GR. It trades about 0.08 of its potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.11 per unit of risk. If you would invest 4,534 in Meta Financial Group on November 6, 2024 and sell it today you would earn a total of 3,216 from holding Meta Financial Group or generate 70.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meta Financial Group vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| Meta Financial Group |
| VIENNA INSURANCE |
Meta Financial and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meta Financial and VIENNA INSURANCE
The main advantage of trading using opposite Meta Financial and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Financial 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.| Meta Financial vs. Addus HomeCare | Meta Financial vs. ADDUS HOMECARE | Meta Financial vs. Corporate Office Properties | Meta Financial vs. Autohome ADR |
| VIENNA INSURANCE vs. TYSON FOODS A | VIENNA INSURANCE vs. SBM OFFSHORE | VIENNA INSURANCE vs. Tyson Foods | VIENNA INSURANCE vs. SOLSTAD OFFSHORE NK |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets |