Correlation Between S IMMO and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both S IMMO 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 S IMMO and Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S IMMO AG and Vienna Insurance Group, you can compare the effects of market volatilities on S IMMO 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 S IMMO with a short position of Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of S IMMO and Vienna Insurance.
Diversification Opportunities for S IMMO and Vienna Insurance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPI and Vienna is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding S IMMO 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 S IMMO 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 S IMMO 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 S IMMO i.e., S IMMO and Vienna Insurance go up and down completely randomly.
Pair Corralation between S IMMO and Vienna Insurance
Assuming the 90 days trading horizon S IMMO AG is expected to generate 0.54 times more return on investment than Vienna Insurance. However, S IMMO AG is 1.84 times less risky than Vienna Insurance. It trades about 0.08 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about -0.03 per unit of risk. If you would invest 2,210 in S IMMO AG on August 30, 2024 and sell it today you would earn a total of 20.00 from holding S IMMO AG or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
S IMMO AG vs. Vienna Insurance Group
Performance |
| Timeline |
| S IMMO AG |
| Vienna Insurance |
S IMMO and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S IMMO and Vienna Insurance
The main advantage of trading using opposite S IMMO and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S IMMO 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.| S IMMO vs. CA Immobilien Anlagen | S IMMO vs. RATH Aktiengesellschaft | S IMMO vs. AT S Austria | S IMMO vs. BAWAG Group AG |
| Vienna Insurance vs. Oesterr Post AG | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG | Vienna Insurance vs. OMV Aktiengesellschaft |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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