Correlation Between Photon Energy and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Photon Energy 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 Photon Energy and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Photon Energy NV and Vienna Insurance Group, you can compare the effects of market volatilities on Photon Energy 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 Photon Energy with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photon Energy and Vienna Insurance.
Diversification Opportunities for Photon Energy and Vienna Insurance
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Photon and Vienna is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Photon Energy NV and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance and Photon Energy 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 Photon Energy NV 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 Photon Energy i.e., Photon Energy and Vienna Insurance go up and down completely randomly.
Pair Corralation between Photon Energy and Vienna Insurance
Assuming the 90 days trading horizon Photon Energy NV is expected to under-perform the Vienna Insurance. In addition to that, Photon Energy is 1.66 times more volatile than Vienna Insurance Group. It trades about -0.09 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 53,089 in Vienna Insurance Group on September 3, 2024 and sell it today you would earn a total of 21,011 from holding Vienna Insurance Group or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Photon Energy NV vs. Vienna Insurance Group
Performance |
| Timeline |
| Photon Energy NV |
| Vienna Insurance |
Photon Energy and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Photon Energy and Vienna Insurance
The main advantage of trading using opposite Photon Energy and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Photon Energy 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.| Photon Energy vs. Vienna Insurance Group | Photon Energy vs. JT ARCH INVESTMENTS | Photon Energy vs. Raiffeisen Bank International | Photon Energy vs. Erste Group Bank |
| Vienna Insurance vs. JT ARCH INVESTMENTS | Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. Erste Group Bank | 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |