Correlation Between Palfinger and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Palfinger 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 Palfinger and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palfinger AG and Vienna Insurance Group, you can compare the effects of market volatilities on Palfinger 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 Palfinger with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palfinger and Vienna Insurance.
Diversification Opportunities for Palfinger and Vienna Insurance
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Palfinger and Vienna is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Palfinger 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 Palfinger 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 Palfinger 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 Palfinger i.e., Palfinger and Vienna Insurance go up and down completely randomly.
Pair Corralation between Palfinger and Vienna Insurance
Assuming the 90 days trading horizon Palfinger AG is expected to under-perform the Vienna Insurance. In addition to that, Palfinger is 1.27 times more volatile than Vienna Insurance Group. It trades about -0.02 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.06 per unit of volatility. If you would invest 2,915 in Vienna Insurance Group on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Vienna Insurance Group or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palfinger AG vs. Vienna Insurance Group
Performance |
| Timeline |
| Palfinger AG |
| Vienna Insurance |
Palfinger and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palfinger and Vienna Insurance
The main advantage of trading using opposite Palfinger and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palfinger 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.| Palfinger vs. Vienna Insurance Group | Palfinger vs. AGRANA Beteiligungs Aktiengesellschaft | Palfinger vs. Voestalpine AG | Palfinger vs. BKS 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |