Correlation Between RMS Mezzanine and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both RMS Mezzanine 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 RMS Mezzanine and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RMS Mezzanine AS and Vienna Insurance Group, you can compare the effects of market volatilities on RMS Mezzanine 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 RMS Mezzanine with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of RMS Mezzanine and Vienna Insurance.
Diversification Opportunities for RMS Mezzanine and Vienna Insurance
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between RMS and Vienna is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding RMS Mezzanine 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 RMS Mezzanine 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 RMS Mezzanine 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 RMS Mezzanine i.e., RMS Mezzanine and Vienna Insurance go up and down completely randomly.
Pair Corralation between RMS Mezzanine and Vienna Insurance
Assuming the 90 days trading horizon RMS Mezzanine AS is expected to generate 11.19 times more return on investment than Vienna Insurance. However, RMS Mezzanine is 11.19 times more volatile than Vienna Insurance Group. It trades about 0.05 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 160.00 in RMS Mezzanine AS on September 1, 2024 and sell it today you would earn a total of 7.00 from holding RMS Mezzanine AS or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RMS Mezzanine AS vs. Vienna Insurance Group
Performance |
| Timeline |
| RMS Mezzanine AS |
| Vienna Insurance |
RMS Mezzanine and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RMS Mezzanine and Vienna Insurance
The main advantage of trading using opposite RMS Mezzanine and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RMS Mezzanine 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.| RMS Mezzanine vs. Vienna Insurance Group | RMS Mezzanine vs. Raiffeisen Bank International | RMS Mezzanine vs. UNIQA Insurance Group | RMS Mezzanine vs. Komercni Banka AS |
| Vienna Insurance vs. Cez AS | Vienna Insurance vs. HARDWARIO as | Vienna Insurance vs. Prabos Plus as | Vienna Insurance vs. Kofola CeskoSlovensko 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |