Correlation Between Kofola CeskoSlovensko and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Kofola CeskoSlovensko 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 Kofola CeskoSlovensko and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kofola CeskoSlovensko as and Vienna Insurance Group, you can compare the effects of market volatilities on Kofola CeskoSlovensko 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 Kofola CeskoSlovensko with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kofola CeskoSlovensko and Vienna Insurance.
Diversification Opportunities for Kofola CeskoSlovensko and Vienna Insurance
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kofola and Vienna is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Kofola CeskoSlovensko 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 Kofola CeskoSlovensko 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 Kofola CeskoSlovensko 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 Kofola CeskoSlovensko i.e., Kofola CeskoSlovensko and Vienna Insurance go up and down completely randomly.
Pair Corralation between Kofola CeskoSlovensko and Vienna Insurance
Assuming the 90 days trading horizon Kofola CeskoSlovensko as is expected to generate 1.28 times more return on investment than Vienna Insurance. However, Kofola CeskoSlovensko is 1.28 times more volatile than Vienna Insurance Group. It trades about 0.44 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about -0.07 per unit of risk. If you would invest 33,600 in Kofola CeskoSlovensko as on August 30, 2024 and sell it today you would earn a total of 4,300 from holding Kofola CeskoSlovensko as or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kofola CeskoSlovensko as vs. Vienna Insurance Group
Performance |
| Timeline |
| Kofola CeskoSlovensko |
| Vienna Insurance |
Kofola CeskoSlovensko and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kofola CeskoSlovensko and Vienna Insurance
The main advantage of trading using opposite Kofola CeskoSlovensko and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kofola CeskoSlovensko 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.| Kofola CeskoSlovensko vs. Moneta Money Bank | Kofola CeskoSlovensko vs. Komercni Banka AS | Kofola CeskoSlovensko vs. Cez AS | Kofola CeskoSlovensko vs. Erste Group Bank |
| Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. JT ARCH INVESTMENTS | Vienna Insurance vs. Komercni Banka 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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