Correlation Between Talanx AG and OPEN HOUSE
Can any of the company-specific risk be diversified away by investing in both Talanx AG and OPEN HOUSE 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 Talanx AG and OPEN HOUSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and OPEN HOUSE GROUP, you can compare the effects of market volatilities on Talanx AG and OPEN HOUSE 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 Talanx AG with a short position of OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and OPEN HOUSE.
Diversification Opportunities for Talanx AG and OPEN HOUSE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Talanx and OPEN is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE GROUP and Talanx AG 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 Talanx AG are associated (or correlated) with OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of Talanx AG i.e., Talanx AG and OPEN HOUSE go up and down completely randomly.
Pair Corralation between Talanx AG and OPEN HOUSE
Assuming the 90 days horizon Talanx AG is expected to generate 0.63 times more return on investment than OPEN HOUSE. However, Talanx AG is 1.58 times less risky than OPEN HOUSE. It trades about 0.41 of its potential returns per unit of risk. OPEN HOUSE GROUP is currently generating about 0.06 per unit of risk. If you would invest 7,080 in Talanx AG on September 1, 2024 and sell it today you would earn a total of 855.00 from holding Talanx AG or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. OPEN HOUSE GROUP
Performance |
| Timeline |
| Talanx AG |
| OPEN HOUSE GROUP |
Talanx AG and OPEN HOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and OPEN HOUSE
The main advantage of trading using opposite Talanx AG and OPEN HOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG position performs unexpectedly, OPEN HOUSE 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 OPEN HOUSE will offset losses from the drop in OPEN HOUSE's long position.| Talanx AG vs. Retail Estates NV | Talanx AG vs. COMMERCIAL VEHICLE | Talanx AG vs. Geely Automobile Holdings | Talanx AG vs. Commercial Vehicle Group |
| OPEN HOUSE vs. Austevoll Seafood ASA | OPEN HOUSE vs. United Natural Foods | OPEN HOUSE vs. MCEWEN MINING INC | OPEN HOUSE vs. Perseus Mining Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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