Correlation Between Vienna Insurance and CA Immobilien
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and CA Immobilien 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 CA Immobilien 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 CA Immobilien Anlagen, you can compare the effects of market volatilities on Vienna Insurance and CA Immobilien 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 CA Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and CA Immobilien.
Diversification Opportunities for Vienna Insurance and CA Immobilien
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vienna and CAI is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and CA Immobilien Anlagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Immobilien Anlagen 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 CA Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Immobilien Anlagen has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and CA Immobilien go up and down completely randomly.
Pair Corralation between Vienna Insurance and CA Immobilien
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.59 times more return on investment than CA Immobilien. However, Vienna Insurance Group is 1.69 times less risky than CA Immobilien. It trades about -0.25 of its potential returns per unit of risk. CA Immobilien Anlagen is currently generating about -0.22 per unit of risk. If you would invest 3,065 in Vienna Insurance Group on August 23, 2024 and sell it today you would lose (175.00) from holding Vienna Insurance Group or give up 5.71% 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. CA Immobilien Anlagen
Performance |
| Timeline |
| Vienna Insurance |
| CA Immobilien Anlagen |
Vienna Insurance and CA Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and CA Immobilien
The main advantage of trading using opposite Vienna Insurance and CA Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, CA Immobilien 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 CA Immobilien will offset losses from the drop in CA Immobilien's long position.| Vienna Insurance vs. Oesterr Post AG | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG | Vienna Insurance vs. OMV Aktiengesellschaft |
| CA Immobilien vs. IMMOFINANZ AG | CA Immobilien vs. S IMMO AG | CA Immobilien vs. Wienerberger AG | CA Immobilien 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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