Correlation Between Vienna Insurance and KARO INVEST
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and KARO INVEST 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 Vienna Insurance and KARO INVEST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vienna Insurance Group and KARO INVEST as, you can compare the effects of market volatilities on Vienna Insurance and KARO INVEST 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 Vienna Insurance with a short position of KARO INVEST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and KARO INVEST.
Diversification Opportunities for Vienna Insurance and KARO INVEST
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vienna and KARO is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and KARO INVEST as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KARO INVEST as and Vienna Insurance 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 Vienna Insurance Group are associated (or correlated) with KARO INVEST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KARO INVEST as has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and KARO INVEST go up and down completely randomly.
Pair Corralation between Vienna Insurance and KARO INVEST
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.5 times more return on investment than KARO INVEST. However, Vienna Insurance Group is 2.01 times less risky than KARO INVEST. It trades about -0.03 of its potential returns per unit of risk. KARO INVEST as is currently generating about -0.12 per unit of risk. If you would invest 75,000 in Vienna Insurance Group on August 26, 2024 and sell it today you would lose (1,100) from holding Vienna Insurance Group or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. KARO INVEST as
Performance |
| Timeline |
| Vienna Insurance |
| KARO INVEST as |
Vienna Insurance and KARO INVEST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and KARO INVEST
The main advantage of trading using opposite Vienna Insurance and KARO INVEST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, KARO INVEST 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 KARO INVEST will offset losses from the drop in KARO INVEST's long position.| Vienna Insurance vs. Cez AS | Vienna Insurance vs. MT 1997 AS | Vienna Insurance vs. Kofola CeskoSlovensko as | Vienna Insurance vs. HARDWARIO as |
| KARO INVEST vs. UNIQA Insurance Group | KARO INVEST vs. JT ARCH INVESTMENTS | KARO INVEST vs. Komercni Banka AS | KARO INVEST vs. Vienna Insurance Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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