Correlation Between Vienna Insurance and Cleen Energy
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and Cleen Energy 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 Cleen Energy 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 Cleen Energy AG, you can compare the effects of market volatilities on Vienna Insurance and Cleen Energy 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 Cleen Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and Cleen Energy.
Diversification Opportunities for Vienna Insurance and Cleen Energy
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vienna and Cleen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and Cleen Energy AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleen Energy AG 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 Cleen Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleen Energy AG has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and Cleen Energy go up and down completely randomly.
Pair Corralation between Vienna Insurance and Cleen Energy
Assuming the 90 days trading horizon Vienna Insurance Group is expected to generate 0.15 times more return on investment than Cleen Energy. However, Vienna Insurance Group is 6.45 times less risky than Cleen Energy. It trades about 0.05 of its potential returns per unit of risk. Cleen Energy AG is currently generating about -0.05 per unit of risk. If you would invest 2,200 in Vienna Insurance Group on August 26, 2024 and sell it today you would earn a total of 710.00 from holding Vienna Insurance Group or generate 32.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. Cleen Energy AG
Performance |
| Timeline |
| Vienna Insurance |
| Cleen Energy AG |
Vienna Insurance and Cleen Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and Cleen Energy
The main advantage of trading using opposite Vienna Insurance and Cleen Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, Cleen Energy 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 Cleen Energy will offset losses from the drop in Cleen Energy's long position.| Vienna Insurance vs. Erste Group Bank | Vienna Insurance vs. UNIQA Insurance Group | Vienna Insurance vs. Raiffeisen Bank International | Vienna Insurance vs. Voestalpine AG |
| Cleen Energy vs. RATH Aktiengesellschaft | Cleen Energy vs. Semperit Aktiengesellschaft Holding | Cleen Energy vs. Telekom Austria AG | Cleen Energy vs. Oesterr Post AG |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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