Correlation Between JT ARCH and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both JT ARCH 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 JT ARCH and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JT ARCH INVESTMENTS and Vienna Insurance Group, you can compare the effects of market volatilities on JT ARCH 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 JT ARCH with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of JT ARCH and Vienna Insurance.
Diversification Opportunities for JT ARCH and Vienna Insurance
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JTINA and Vienna is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JT ARCH INVESTMENTS and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and JT ARCH 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 JT ARCH INVESTMENTS 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 JT ARCH i.e., JT ARCH and Vienna Insurance go up and down completely randomly.
Pair Corralation between JT ARCH and Vienna Insurance
Assuming the 90 days trading horizon JT ARCH is expected to generate 8.34 times less return on investment than Vienna Insurance. But when comparing it to its historical volatility, JT ARCH INVESTMENTS is 5.5 times less risky than Vienna Insurance. It trades about 0.31 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 78,600 in Vienna Insurance Group on November 28, 2024 and sell it today you would earn a total of 7,600 from holding Vienna Insurance Group or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JT ARCH INVESTMENTS vs. Vienna Insurance Group
Performance |
| Timeline |
| JT ARCH INVESTMENTS |
| Vienna Insurance |
JT ARCH and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JT ARCH and Vienna Insurance
The main advantage of trading using opposite JT ARCH and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JT ARCH 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.| JT ARCH vs. Erste Group Bank | JT ARCH vs. Vienna Insurance Group | JT ARCH vs. Moneta Money Bank | JT ARCH vs. UNIQA Insurance Group |
| Vienna Insurance vs. Erste Group Bank | Vienna Insurance vs. JT ARCH INVESTMENTS | Vienna Insurance vs. Raiffeisen Bank International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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