Correlation Between HOYA and VIENNA INSURANCE
Can any of the company-specific risk be diversified away by investing in both HOYA 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 HOYA and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOYA Corporation and VIENNA INSURANCE GR, you can compare the effects of market volatilities on HOYA 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 HOYA with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOYA and VIENNA INSURANCE.
Diversification Opportunities for HOYA and VIENNA INSURANCE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HOYA and VIENNA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Corp. and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and HOYA 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 HOYA Corporation 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 HOYA i.e., HOYA and VIENNA INSURANCE go up and down completely randomly.
Pair Corralation between HOYA and VIENNA INSURANCE
Assuming the 90 days horizon HOYA Corporation is expected to generate 5.55 times more return on investment than VIENNA INSURANCE. However, HOYA is 5.55 times more volatile than VIENNA INSURANCE GR. It trades about 0.1 of its potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.03 per unit of risk. If you would invest 7,257 in HOYA Corporation on September 24, 2024 and sell it today you would earn a total of 4,673 from holding HOYA Corporation or generate 64.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOYA Corp. vs. VIENNA INSURANCE GR
Performance |
| Timeline |
| HOYA |
| VIENNA INSURANCE |
HOYA and VIENNA INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOYA and VIENNA INSURANCE
The main advantage of trading using opposite HOYA and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOYA 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.The idea behind HOYA Corporation and VIENNA INSURANCE GR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| VIENNA INSURANCE vs. CVW CLEANTECH INC | VIENNA INSURANCE vs. SCANDMEDICAL SOLDK 040 | VIENNA INSURANCE vs. Cleanaway Waste Management | VIENNA INSURANCE vs. AVITA Medical |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |