Correlation Between KTM Industries and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both KTM Industries 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 KTM Industries and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KTM Industries AG and Vienna Insurance Group, you can compare the effects of market volatilities on KTM Industries 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 KTM Industries with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of KTM Industries and Vienna Insurance.
Diversification Opportunities for KTM Industries and Vienna Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KTM and Vienna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KTM Industries AG and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and KTM Industries 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 KTM Industries AG 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 KTM Industries i.e., KTM Industries and Vienna Insurance go up and down completely randomly.
Pair Corralation between KTM Industries and Vienna Insurance
If you would invest 3,015 in Vienna Insurance Group on November 4, 2024 and sell it today you would earn a total of 220.00 from holding Vienna Insurance Group or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KTM Industries AG vs. Vienna Insurance Group
Performance |
| Timeline |
| KTM Industries AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vienna Insurance |
KTM Industries and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KTM Industries and Vienna Insurance
The main advantage of trading using opposite KTM Industries and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KTM Industries 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.| KTM Industries vs. Wiener Privatbank SE | KTM Industries vs. Erste Group Bank | KTM Industries vs. Vienna Insurance Group | KTM Industries vs. Addiko Bank AG |
| Vienna Insurance vs. Erste Group Bank | Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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