Correlation Between Jupiter Green and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Jupiter Green 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 Jupiter Green and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Green Investment and Vienna Insurance Group, you can compare the effects of market volatilities on Jupiter Green 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 Jupiter Green with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Green and Vienna Insurance.
Diversification Opportunities for Jupiter Green and Vienna Insurance
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and Vienna is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Green Investment and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Jupiter Green 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 Jupiter Green Investment 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 Jupiter Green i.e., Jupiter Green and Vienna Insurance go up and down completely randomly.
Pair Corralation between Jupiter Green and Vienna Insurance
Assuming the 90 days trading horizon Jupiter Green is expected to generate 1.42 times less return on investment than Vienna Insurance. In addition to that, Jupiter Green is 1.85 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 0.07 per unit of volatility. If you would invest 2,237 in Vienna Insurance Group on October 13, 2024 and sell it today you would earn a total of 796.00 from holding Vienna Insurance Group or generate 35.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Green Investment vs. Vienna Insurance Group
Performance |
| Timeline |
| Jupiter Green Investment |
| Vienna Insurance |
Jupiter Green and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Green and Vienna Insurance
The main advantage of trading using opposite Jupiter Green and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Green 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.| Jupiter Green vs. SupplyMe Capital PLC | Jupiter Green vs. SM Energy Co | Jupiter Green vs. FuelCell Energy | Jupiter Green vs. Grand Vision Media |
| Vienna Insurance vs. Lindsell Train Investment | Vienna Insurance vs. Caledonia Investments | Vienna Insurance vs. Jupiter Green Investment | Vienna Insurance vs. Diversified Energy |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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